Menlo Company distributes a single product. The company's sales and expenses for last month follow: tes...
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Menlo Company distributes a single product. The company's sales and expenses for last month follow: tes Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: Total Per Unit $ 624,000 436,800 $ 40 28 187,200 $ 12 146,400 $ 40,800 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each month to attain a target profit of $78,000? 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. 4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. 5. What is the company's CM ratio? If the company can sell more units thereby increasing sales by $77,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Req 3B Reg 4 Req 5 What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit sales units Break-even point in dollar sales Menlo Company distributes a single product. The company's sales and expenses for last month follow: tes Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: Total Per Unit $ 624,000 436,800 $ 40 28 187,200 $ 12 146,400 $ 40,800 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each month to attain a target profit of $78,000? 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. 4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. 5. What is the company's CM ratio? If the company can sell more units thereby increasing sales by $77,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Req 3B Reg 4 Req 5 What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit sales units Break-even point in dollar sales
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Answer rating: 100% (QA)
1 Breakeven Point Breakeven point in unit sales Divide the total fixed expenses by the contribution margin per unit Total Fixed Expenses 146400 Contri... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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