Exercise 6-11 Missing Data; Basic CVP Concepts [LO6-1, LO6-9] Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. (Hint: One way to find 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.) Required: a. Assume that only one product is being sold in each of the four following case situations: b. Assume that more than one product is being sold in each of the four following case situations: Complete this question by entering your answers in the tabs below. Required B Required A Assume that only one product is being sold in each of the four following case situations: Case #2 Case #4 Case #1 Case #3 10,000 6,000 Unit sold 15,000 300,000 100,000 $ 180,000 Sales Variable expenses 120,000 70,000 Fixed expenses 50,000 32,000 100,000 8,000 12,000 $ (10,000) Net operating income (loss) Contribution margin per unit $ 10 13 $ Required A Required B Required B Required A Assume that more than one product is being sold in each of the four following case situations: Case #1 Case #2 Case #3 Case #4 500,000 400,000 Sales $ $ $ 600,000 Variable expenses 260,000 420,000 Fixed expenses 130,000 100,000 7,000 Net operating income (loss) 20,000 $ $ $ (5,000) Contribution margin ratio (percent) 20 % 60 % Required A Required B> Exercise 6-18 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio [LO6-1, LO6-3, LO6-5, LO6-6, LO6-7] Menlo Company distributes a single product. The company's sales and expenses for last month follow: Per Total Unit $ 30 12 Sales $ 450,000 180,000 Variable expenses Contribution margin $ 18 270,000 Fixed expenses 216,000 $ 54,000 Net operating income 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 $90,000? 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 $50,000 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. Req 1 Req 2 Req 3A Req 3B Req 4 Req 5 What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit sales units Break-even point in dollar sales
