Exercise 6-7 (Algo) Target Profit Analysis (L06-6) Lin Corporation has a single product whose selling price is $135 per unit and whose variable expense is $81 per unit. The company's monthly fixed expense is $23,580. Required: 1. Calculate the unit sales needed to attain a target profit of $4,500. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $9,500. (Round your intermediate calculations to the nearest whole number.) units 1. Units sales to attain target profit 2. Dollar sales to attain target profit $ 14 Exercise 6-8 (Algo) Compute the Margin of Safety (L06-7) Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month's budget appear below, Selling price per unit $ 27 Variable expense per unit Fixed expense per month $ 11,310 Unit sales personth 1,020 Required: 1. What is the company's margin of safety? (Do not round intermediate calculations.) 2. What is the company's margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (ie. 1234 should be entered as 12.34).) 1. Margin of safety (in dollars) 2. Margin of safety percentage % Exercise 6-9 (Algo) Compute and Use the Degree of Operating Leverage (LO6-8] Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Amount Sales Sales $ 123,000 100% Variable expenses 49,200 404 Contribution margin 73,800 60% Fixed expenses 17,000 Net operating income 56,800 Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 18% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 18% increase in unit sales. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the company's degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage Required 2 > Slid Exercise 6-9 (Algo) Compute and Use the Degree of Operating Leverage (L06-8) 100% 604 Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Amount Sales Sales $ 123,000 Variable expenses 49,200 409 Contribution margin 73,800 Fixed expenses 17,000 Net operating income $ 56,800 Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage, estimate the impact on net operating income of a 18% increase in unit sales. 3. Construct a new contribution format income statement for the company assuming a 18% increase in unit sales. Complete this question by entering your answers in the tabs below. es Required 1 Required 2 Required 3 Using the degree of operating leverage, estimate the impact on net operating income of a 18% increase in unit soles. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (.e.1234 should be entered as 12.34).) Net operating income by Required 1 Required 3
