Exercise 6-18 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio (LO6-1, L06-3, LO6-5, LO6-6, LO6-7] Menlo Company distributes a single product. The company's sales and expenses for last month follow: sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 312, 890 218,400 93, 600 75,600 $ 18,900 Per Unit $ 20 14 $ 6 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 $34.200? 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 $62,000 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. Reg 1 Req2 Reg Reg 38 Reg 4 Regs 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 Ne Req 2 > Exercise 6-18 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio (LO6-1, L06-3, L06-5, L06-6, LO6-7) Menlo Company distributes a single product. The company's sales and expenses for last month follow. Sales Variable expenses Contribution margin Fixed expenses Net operating income Total 3 312,000 218,400 93,600 75,600 $ 18,000 Per Unit $ 20 14 5 6 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 $34,200? 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 $62,000 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. Reg 1 Reg 2 Reg 3A RegJB Reg 4 Reg 5 Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin xercise 6-18 Break-Even and Target Profit Analysis; Margin of Safety; CMR O6-6, LO6-7 Menlo Company distributes a single product. The company's sales and expenses for last month fc Total $ 312,000 218,400 93, 600 75,600 $ 18,080 Per Unit $20 14 $ 6 Sales Variable expenses Contribution margin Fixed expenses 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 poin 3-a. How many units would have to be sold each month to attain a target profit of $34,200? 3-b. Verify your answer by preparing a contribution format income statement at the target sales le 4. Refer to the original data. Compute the company's margin of safety in both dollar and percenta 5. What is the company's CM ratio? if sales increase by $62,000 per month and there is no chang would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Req1 Req Reg 2 Req 3B Reg 5 Reg 4 How many units would have to be sold each month to attain a target profit of $34, 2007 Units sales needed to attain target prolit Exercise 6-18 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio (LO6-1, LO6-6, LO6-7 Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 312,000 218,400 93,600 75,600 $ 18,000 Per Unit $ 20 14 $ 6 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 $34,200? 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 $62,000 per month and there is no change in fixed expen would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Req 3B Reg 4 Reg 5 What is the company's CM ratio? If sales increase by $62,000 per month and there is no change in fixed expenses, by much would you expect monthly net operating income to increase? 96 CM ratio Net operating income increases by
