Wesley Company manufactures and sells a single product. The company's income statement at sales level of...
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Wesley Company manufactures and sells a single product. The company's income statement at sales level of 19,500 units for last quarter follows: Total $780, 000 546, 000 Sales Less: Variable expenses Contribution margin Less: Fixed expenses 234,000 190,476 Net operating income $ 43,524 Required: 1. What is the monthly break-even point in units sold and in sales dollars? (Round your intermediate calculations and final answers to the nearest whole number.) Answer is complete and correct. Break-even Point Break-even point in units sold 5,291 O Break-even point in sales dollars $ 211,640 O 2. Without resorting to computations, calculate the total contribution margin at the break-even point for the quarter. Answer is not complete. Total contribution margin 3-a. How many units would have to be sold each quarter to earn a target profit of $15,600? Use the formula method. Units sold to attain target profit 3-b. Verify your answer by preparing a contribution format income statement at the target level of sales. X Answer is not complete. Total Unit Sales Less: Variable expenses Contribution margin Less: Fixed expenses 206,076 Net operating income 206.076 4. Refer to the original data. Compute the company's margin of safety for the quarter in units, in dollars and as a percentage of last quarter's sales. (Round "Percentage" answer to 1 decimal place, (i.e., 0.123 should be considered as 12.3%).) Units Dollars Percentage Margin of safety % 5. What is the company's CM ratio? If quarterly sales decrease by $84,800 and there is no change in fixed expenses, what would you expect the quarter's net operating income to be? (Do not prepare an income statement; use the CM ratio to compute your answer.) CM ratio % Net operating income Wesley Company manufactures and sells a single product. The company's income statement at sales level of 19,500 units for last quarter follows: Total $780, 000 546, 000 Sales Less: Variable expenses Contribution margin Less: Fixed expenses 234,000 190,476 Net operating income $ 43,524 Required: 1. What is the monthly break-even point in units sold and in sales dollars? (Round your intermediate calculations and final answers to the nearest whole number.) Answer is complete and correct. Break-even Point Break-even point in units sold 5,291 O Break-even point in sales dollars $ 211,640 O 2. Without resorting to computations, calculate the total contribution margin at the break-even point for the quarter. Answer is not complete. Total contribution margin 3-a. How many units would have to be sold each quarter to earn a target profit of $15,600? Use the formula method. Units sold to attain target profit 3-b. Verify your answer by preparing a contribution format income statement at the target level of sales. X Answer is not complete. Total Unit Sales Less: Variable expenses Contribution margin Less: Fixed expenses 206,076 Net operating income 206.076 4. Refer to the original data. Compute the company's margin of safety for the quarter in units, in dollars and as a percentage of last quarter's sales. (Round "Percentage" answer to 1 decimal place, (i.e., 0.123 should be considered as 12.3%).) Units Dollars Percentage Margin of safety % 5. What is the company's CM ratio? If quarterly sales decrease by $84,800 and there is no change in fixed expenses, what would you expect the quarter's net operating income to be? (Do not prepare an income statement; use the CM ratio to compute your answer.) CM ratio % Net operating income
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Sales price per unit Variable Cost Contribution per unit ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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