Wilson Racquet Manufacturers produces three different types of tennis racquets: Control Racquet, Tweener Racquet, and a Power Racquet. Financial information for the three racquet product lines is shown below: Control Tweener Power Total Sales$450,000$250,000$65,000 $765,000 Variable expenses 325,000 140,000 58,000 523,000 Contribution margin125,000 110,0007,000 242,000 Fixed expenses 75,000 35,000 22,000 132,000 Oper. income (loss)$ 50,000$ 75,000$(15,000) $110,000If the fixed expenses for the Power Racquet line are not avoidable since they are allocated fixed costs, what will be total operating income be if the Power Racquet line is dropped?

A commemorative speech is the one kind of speech in which clichés and trite sentiments are appropriate.

As companies expand and work towards better understanding their existing and potential clients, they accumulate virtual profiles of their customers. The information gathered can vary in nature and scope but ultimately creates a snapshot of a typical customer. Which of the following are examples of financial information that may be collected about a customer?

Questions of fact deal only with events that have already happened.

Crest Computing Inc. sells three types of computing devices. Information on these is as follows:Laptop25% of total salesUnit contribution margin of $40 Tablet60% of total salesUnit contribution margin of $45Desktop15% of total salesUnit contribution margin of $35If the fixed costs over the last three months of the year are $219,700, what is the expected break-even point for this same period?

Emanuel’s Electronics Co. has the following results for the month: Revenues equal $6,500, contribution margin equals $3,900, and operating income equals $600. Revenues are expected to grow by 10% next month. Using the principle of degree of operating leverage (DOL) and based on the projected revenue increase, what can Emanuel’s Electronics expect in operating income next month?

Vespa, Inc. requires sales of $4,000,000 to cover its fixed costs of $520,000 and to earn net income of $1,000,000. What is Vespa’s contribution margin ratio?

Fancy Footwear is a premier designer and manufacturer of designer shoes for women. Over the past two years, they have concerted a lot of effort into both their boots and heels divisions. The results of their efforts are shown here:Management is interested in analyzing this data. What is the percent change in gross profit for both the Boots and Heels divisions from Year 1 to year 2? (Use parentheses around a number to indicate a negative value or loss.)

Tara oversees materials acquisition for an HVAC company, and she has raised concerns about their year-to-year increases in direct materials cost, and they would like to use analytics to help determine why this happened. What question could Tara ask first to help her start the analysis?

Chelsea’s Candles is a medium-sized factory that produces candles that hold a small trinket in the wax. As the candle burns and the wax melts, eventually the trinket reveals itself. As part of their yearly review, they use data analytics to determine what changes they might implement in the coming year. Which of the following actions would most likely be part of the “Make Decisions” step in the decision-making process?