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i just need help solving 4 &5 Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 310,000 217,000 93,000 76,200 $ 16,800
i just need help solving 4 &5
Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 310,000 217,000 93,000 76,200 $ 16,800 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 brea 3-a. How many units would have to be sold each month to attain a target profit of $27 3-b. Verify your answer by preparing a contribution format income statement at the ta 4. Refer to the original data. Compute the company's margin of safety in both dollar a 5. What is the company's CM ratio? If sales increase by $71,000 per month and there 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 Req 3B Req 4 Reg 5 Refer to the original data. Compute the company's margin of safety in both dollar and pe percentage answer to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) Dollars Percentage % Margin of safety 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 $27,000? 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 $71,000 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 Req 3B Req 4 Req 5 What is the company's CM ratio? If sales increase by $71,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? % CM ratio Net operating income increases byStep by Step Solution
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