Question: steps showing how each calculation was done would be appreciated Menlo Company distributes a single product. The company's sales and expenses for last month follow:

 steps showing how each calculation was done would be appreciated Menlo

Company distributes a single product. The company's sales and expenses for last

month follow: Per Unit $ 40 28 Sales Variable expenses Contribution margin

Fixed expenses Net operating income Total $ 608,000 425,600 182,400 144,000 38,400

$ 12 Required: 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

steps showing how each calculation was done would be appreciated

Menlo Company distributes a single product. The company's sales and expenses for last month follow: Per Unit $ 40 28 Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 608,000 425,600 182,400 144,000 38,400 $ 12 Required: 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 $76,800?. 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 sales increase by $65,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Req 1 Req 2 Req 3A Req 3B Reg 4 Req 5 What is the monthly break-even point in unit sales and in dollar sales? units Break-even point in unit sales Break-even point in dollar sales Req 1 Req 2 Req 3A Reg 3B Req 4 Req 5 Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin Req 1 Req 2 Req 3a Req 3B Req 4 Req 5 How many units would have to be sold each month to attain a target profit of $76,800? Units sales needed to attain target profit Req 1 Req 2 Req 3A Req 3B Req 4 Req 5 Verify your answer by preparing a contribution format income statement at the target sales level. Menlo Company Contribution Income Statement Total Per Unit 0 $ 0 $ 0 Req 1 Req 2 Req Req 3B Req 4 Req 5 Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. (Round your percentage answer to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) Dollars Percentage % Margin of safety Req 1 Req 2 Req 3A Req 3B Reg 4 Reg 5 What is the company's CM ratio? If sales increase by $65,000 per month and there is no change in fixed expenses, by hov much would you expect monthly net operating income to increase? CM ratio % Net operating income increases by

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!