ADMS 2510 Study Guide - Midterm Guide: Earnings Before Interest And Taxes, I'Ll Be Doggone, Ravioli

• School: York University
• Department: Administrative Studies
• Course: ADMS 2510
• Professor: All

Document Summary

[5 marks for each part: calculate the break-even point in dollars where: Required sales = (,000 + ,000)/ = 35,000 units c) Mos = expected sales be sales units. Mos = 52,000 20,000 = 32,000 units. Mos is the amount by which sales could fall before break-even was encountered. 2 d) the financial results for the past year for east river manufacturing are listed below. The sales manager believes that a ,000 advertising campaign would increase sales revenue by 8%. Use incremental analysis to determine if this plan should be implemented. Yes, the plan should be implemented (small deduction for getting the correct answer, but not by using incremental analysis): select details from the financial statements of ernie"s emporium are shown below. If the company expects sales to increase by 15%, by how much will operating income increase? (use the degree of operating leverage to answer this question. ) Ol = (,000 - ,000)/ (,000 - ,000 - ,000)