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?

Corner Cupcakes is considering the purchase of a new machine for its bakery. It can purchase the new machine at a cost of $10,000. For the existing machine, last year, the bakery spent $3,200 on machine repairs, an additional $1,900 on add-ons, and $2,700 for a software upgrade. How much of the given costs is relevant to the decision to purchase the new machine for the bakery?

Which of the following statements regarding gross margin and contribution margin is correct?

Benson Company is a retailer that specializes in the e-commerce sale of small office supplies including decorative file folders, personalized desk calendars, and trendy desk accessories. As part of their annual review, management decided to perform some analysis on trends over the past five years. One manager suggested they use data visualization for this purpose. If management would like to analyze how well the company achieved their sales targets over the past five years, then what type of chart would be the best to use to do this?

Carson is the marketing manager at a local travel publication. He is working with department heads to get some data to help him in his efforts to attract new clients and investigate aspects of their existing clientele. Why would Carson choose to use descriptive analytics?