Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
1. XYZ Company distributes a single product. The company's sales and expenses for last month 10 follow: Total Per Unit Sales ... Tk 5,00,000 Tk
1. XYZ Company distributes a single product. The company's sales and expenses for last month 10 follow: Total Per Unit Sales ... Tk 5,00,000 Tk 50 Variable expenses. 2,00,000 3,00,000 20 Tk 30 Contribution margin .... Fixed expenses 2,30,000 10.000 Net operating income. Requirements: A) What is the monthly break-even point in unit sales and in Taka sales? B) Without resorting to computations, what is the total contribution margin at the break-even point? C) How many units would have to be sold each month to earn a target profit of Tk 1,00,000? Verify your answer by preparing a contribution format income statement at the target sales level. D) Refer to the original data. Compute the margin of safety in both Taka and percentage terms. E) What is the company's CM ratio? If sales increase by Tk 50,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started