Answer:
35.98%
12,362 pairs
$2.53
9,688 pairs
Explanation:
As per the data given in the question,
1)
As we know that
Contribution margin ratio = (Contribution margin per unit) ÷ (Selling price per unit) × 100
where,
Contribution margin per unit = Selling price per unit - variable cost per unit\
So,
Selling price = $137.00
Variable cost = $87.70
Contribution Margin = $137.00 - $87.70 = $49.30
Contribution margin ratio = $49.30 ÷ $137.00
= 35.98%
2)
Net Income after tax = $41,620
Income Before tax = $41,620 ÷ 50%
= $83,240
Now Pairs of touring skis will be sold by company = (Income before tax + fixed cost) ÷ Contribution Margin
= ($83,240 + $526,200) ÷ $49.30
= 12,362 pairs
3)
Break-even of mountaineering model
= Fixed cost ÷ (Selling price per unit - variable cost per unit)
= $622,400 ÷ ($149 - $87.70)
= $10,153
Now Let Variable cost be Y
$10,153 = $526,200 ÷ ($137 - Y)
Y = $85.17
Therefore, Variable cost per unit decreased by
= ($87.70 - $85.17)
= $2.53
4)
New Fixed cost
= Fixed cost × increased percentage
= $526,200 × 1.15
= $605,130
New variable cost per unit
= $87.70 × 0.85
= $74.54
New Break-even point = New Fixed cost ÷ Contribution Margin
= $605,130 ÷ ($137-$74.54)
= 9,688 pairs
