Exercise 5-18 Break-Even and Target Profit Analysis; Margin of Safety, CM Ratio [LO5-1, LO5-3, L05-5, LO5-6, LO5-7] Menlo Company distributes a single product. The company's sales and expenses for last month follow. Per Unit 5 48 28 Sales Variable expenses Contribution margin fixed expenses Net operating income Total $ 600,00 42,800 180, eee 248,888 31, 20e Requlred: 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 point2 3-a. How many units would have to be sold each month to attain a target profit of $75,6002 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 of sales increase by 598.000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Re REQ 3A R49 38 Rob What is the monthly brealeven point in unit sales and in dollars ? Break-even Po Break-even contin Contribution margin Fixed expenses Net operating income 189,600 146,800 31,28e 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 $75,600? 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 $98.000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Res 2 Reg 3A Reg 38 Reg 4 Reg 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 Reg2 Net operating income 02:02:38 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 $75,600? 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 $98,000 per month and there is no change in fixed expenses. by would you expect monthly net operating income to increase? skipped Complete this question by entering your answers in the tabs below. Regel Reg 2 Red 3A Reg 3B Req 4 Reqs Without resorting to computations, what is the total contribution margin at the break-even point Total contribution margin Prev 12 14 Next points 0202 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 $75,600? 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 $98.000 per month and there is no change in fixed expenses, by h would you expect monthly net operating income to increase? 6002 Point in both at the Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Reg 3B Reg 38Req4 How many units would have to be sold each month to attain a target profit of $75,6002 Units sales needed to attain target profit S 02.02.01 ONE J. venny your answer by preparing a contribuon 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 $98,000 per month and there is no change in fixed would you expect monthly net operating income to increase? Skipped Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req Req 3B Reg 4 Req5 What is the company's CM ratio? If sales increase by $98,000 per month and there is no change in fixed expen much would you expect monthly net operating income to increase? CM ratio Net operating income increases by
