| October 14, 2019

1. Assuming fixed costs and net sales are spread evenly throughout the year, determine Ventana’s monthly break-even point in (a) units and (b) dollars. 2. Calculate the contribution margin ratio, the annual margin of safety ratio, and the annual profit 3. Determine the percentage increase of annual profits if Ventana Inc. increases its selling price by 23% and all other factors (including demand) remain constant. 4. Assume the price remains at $49 per unit and variable costs remain the same per unit, but fixed costs increase by 20% annually.  Calculate the percentage increase in unit sales required to achieve the same level of annual profit calculated in required # 2 5. Determine the sales required to earn an operating income of $370,000 after tax.  Perma Inc.’s income tax is 30%.  

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