Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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 22,000 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 20,000 Operating income 18,000 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%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Surviving An OSHA Audit A Managent Guide

Authors: Frank R. Spellman

1st Edition

0367579340, 978-0367579340

More Books

Students also viewed these Accounting questions