ACCT 205 - Summer 2020 Chapter 5 Assignment 1. Mila & Co. manufactures and sells a single product. The following data pertains to the month of July 2019. Units sold 15,000 Revenues 120,000 Cost of goods sold Variable manufacturing costs 60,000 Fixed manufacturing costs Total cost of goods sold 82.000 Gross margin 38,000 Operating costs Variable selling costs 6,000 Fixed selling and administrative costs 14.000 Total operating costs Operating income 18,000 22.000 20,000 a. Prepare a contribution format income statement. b. What is the company's break-even point in unit sales? c. Find the company's break-even point in dollar sales using two different methods. d. What is the margin of safety (in units) for July 2019? e. What dollar sales volume does Mila & Co. need to achieve in order to earn a $36,000 operating profit per month? 2. Lucilene Company markets three different products. Sales and contribution margin ratios for the three products appear below: Product 1 Product 2 Product 3 Total Sales in dollars 20,000 50,000 40,000 Contribution margin ratio 40% 28% 22% Compute the overall contribution margin ratio for the company. 3. Mauralo Company distributes a single product whose selling price is $2.50 per unit and whose variable cost is $1.75 per unit. The monthly fixed expense is $7.500. The company's current sales are 25,000 units per month. How many additional units should the company sell if it wants to increase operating income by 20%