Question

Evaluate each of the alternatives considered by Derby Shoes. ​(Use parentheses or a minus sign for an operating​ loss.) Alternative 1 Sales revenue $165,000 Variable cost 84,000 Contribution margin 81,000 Fixed cost 49,500 Operating income (loss) $31,500 Alternative 2 $198,000 126,000 72,000 60,000 $12,000 Alternative 3 $168,000 96,000 72,000 45,000 $27,000 Alternative 4 $264,000 168,000 96,000 90,000 $6,000 Do any of the options meet or exceed Derby ​'s targeted increase in income of​ 25%? ​(Round your answers to the nearest whole percent. Use parentheses or a minus sign for a negative percentage​ change.) Percent change in Alternative operating income Meet or Exceed? 1 110 % No 2 -20 % No 3 80 % Yes 4 -60 % No Choose from any list or enter any number in the input fields and then click Check Answer. Original Sales Revenue 55 per unit $165,000 Variable cost 35 per unit $105,000 CM 60,000 FC 45,000 Operating Income 15,000

Answer 1

Hi

Please let me know in case you face any issue: