Question: typewritten given all info needed , reference given with solution reference: https://drive.google.com/drive/folders/1-UgDJ4ipmLbDRDFLYZ6_-BIfpM7p9gCs ACquIICU. 1. What is the company's margin of safety? 7) ) 2. What
typewritten given all info needed , reference given with solution
ACquIICU. 1. What is the company's margin of safety? 7) ) 2. What is the company's margin of safety as a percentage of its sales? EXERCISE 5-9 Compute and Use the Degree of Operating Leverage Cl LO5-8 Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Amount Percent of Sales Sales $80,000 100% Variable expenses 32,000 40% Contribution margin 48,000 60% Fixed expenses 38,000 Net operating income $10,000 Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in unit sales.3. Verify your estimate from part (2) above by constructing a new contribution format income statement for the company assuming a 5% increase in unit sales. EXERCISE 5-10 Multiproduct Break-Even Analysis L059 month for the two games appears below: Claimjumper Makeover Sales $30,000 Variable expenses 20,000 Contribution margin $10,000 Fixed expenses Net operating income Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall breakeven point in dollar sales? $70,000 50,000 $20,000 Total $ 100,000 70,000 30,000 24,000 $ 6,000 Page 222 Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent 3. Verify the overall break-even point for the company by constructing a contribution format income statement showing the appropriate I1): ' EXERCISE 57 Target Profit Analysis L056 Lin Corporation has a single product Whose selling price is $120 per unit and whose Variable expense is $80 per unit. The company's monthly xed expense is $50,000. Required: 1. Calculate the unit sales needed to attain a target prot of$10.000. 2. Calculate the dollar sales needed to attain a target prot 0f$15.000. EXERCISE 58 Compute the Margin of Safety LO57 Molander Corporation is a distributor ofa sun umbrella used at resort hotels Data concerning the next month's budget appear below: Selling price per unit $30 Variable expense per unit $20 Fixed expense per month $7,500 Unit sales per month 1,000 3. Verify the overall break-even point for the company by constructing a contribution format income statement showing the appropriate levels of sales for the two products, EXERCISE 511 Missing Data; Basic CVP Concepts LOB1, L059 Fill in the missing amounts in each ol'the eight case situations below. Each case is independent of the others. (Him; One way to nd the missing amounts would be to prepare a contribution format income statement for each case, enter the known data, and then compute the missing items) 3. Assume that only one product is being sold in each ofthe four following case situations: Contribution Net Operating Units Variable Margin Fixed Income Case Sold Sales Expenses per Unit Expenses (Loss) 1 15,000 $ 180,000 $120,000 ? $50,000 ? 2 7 $100,000 ? $10 $32,000 $8,000 3 10,000 7 $70,000 $13 ? $12,000 4 6,000 $300,000 ? '1 $100,000 $( 10,000) b. Assume that more than one product is being sold in each of the four following case situations
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