Managerial Accounting Question Help Needed

t is the monthly break-even point in unit sales and in dollar sales? hout resorting to computations, what is the total contribution margin at the break-even point? ow many units would have to be sold each month to attain a target profit of $62,400 ? erify your answer by preparing a contribution format income statement at the target sales level. er to the original data. Compute the company's margin of safety in both dollar and percentage terms. at is the company's CM ratio? If the company can sell more units thereby increasing sales by $91,000 per month and th e in fixed expenses, by how much would you expect monthly net operating income to increase? mplete this question by entering your answers in the tabs below. many units would have to be sold each month to attain a target profit of $62,400 ? 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 $62,400 ? 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 the company can sell more units thereby increasing sales by $91,000 per month and there is 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. Without resorting to computations, what is the total contribution margin at the break-even point? 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 $62,400 ? 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 the company can sell more units thereby increasing sales by $91,000 per mont 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. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. (Round your percentage answer to 2 decimal places (i.e, 0.1234 should be entered as 12.34 ).) 3. Calculate the break-even point in unit sales assuming that Neptune plans to use all of its production capacity to produce 19,000 units that it sells and that it also commits to hiring the outside supplier to produce up to 17,000 additional units. 4. Assume that Neptune plans to use all of its production capacity to produce the first 19,000 units that it sells and that it also to hiring the outside supplier to produce up to 17,000 additional units. a. What total unit sales would Neptune need to achieve in order to equal the profit earned in requirement 2 a? b. What total unit sales would Neptune need to achieve in order to attain a target profit of $13,500 per month? c. How much profit will Neptune earn if it sells 36,000 units per month? d. How much profit will Neptune earn if it sells 36,000 units per month and agrees to pay its marketing manager a bonus for each unit sold above the break-even point from requirement 3 ? Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15.00 per ball, of which 60% is labor cost: Last year, the company sold 33,750 of these balls, with the following results: Requilied: 1. Compute (a) last year's CM ratio and the break-even point in balls, and (b) the degree of operating leverage at last year's sales 2. Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $3.00 per ball. If change takes place and the selling price per ball remains constant at $25.00, what will be next year's CM ratio and the break-ev point in balls? 3. Refer to the data in requirement 2 . If the expected change in variable expenses takes place, how many balls will have to be se next year to earn the same net operating income, $106,500, as last year? 4. Refer again to the data in requirement 2 . The president feels that the company must raise the selling price of its basketballs. Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement 1a), what selling price per b. must it charge next year to cover the increased labor costs? 5. Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plar would slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the new plant is built would be the company's new CM ratio and new break-even point in balls? 6. Refer to the data in requirement 5. a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $106,500, as year? b. Assume the new plant is built and that next year the company manufactures and sells 33,750 balls (the same number as sol year). Prepare a contribution format income statement and compute the degree of operating leverage. point in balls? 3. Refer to the data in requirement 2 . If the expected change in variable expenses takes place, how many balls will next year to earn the same net operating income, $106,500, as last year? 4. Refer again to the data in requirement 2 . The president feels that the company must raise the selling price of its Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement 1a), what sellir must it charge next year to cover the increased labor costs? 5. Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant would slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the ne would be the company's new CM ratio and new break-even point in balls? 6. Refer to the data in requirement 5. a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income year? b. Assume the new plant is built and that next year the company manufactures and sells 33,750 balls (the same year). Prepare a contribution format income statement and compute the degree of operating leverage. Complete this question by entering your answers in the tabs below. Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The plant would slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the plant is built, what would be the company's new CM ratio and new break-even point in balls? (Round "CM Ratio" to 2 places and round "Unit sales to break even" up to the nearest whole unit.) would slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the new would be the company's new CM ratio and new break-even point in balls? 6. Refer to the data in requirement 5. a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, year? b. Assume the new plant is built and that next year the company manufactures and sells 33,750 balls (the same year). Prepare a contribution format income statement and compute the degree of operating leverage. Complete this question by entering your answers in the tabs below. Refer to the data in requirement 5 . Assume the new plant is built and that next year the company manufactures and sell 33,750 balls (the same number as sold last year). Prepare a contribution format income statement and compute the deg operating leverage. (Round "Degree of operating leverage" to 2 decimal places.) cnange takes piace ana the semng price per Dall remains constant at $.U, wnat wil De next year S Cin ratio an point in balls? 3. Refer to the data in requirement 2 . If the expected change in variable expenses takes place, how many balls wi next year to earn the same net operating income, $106,500, as last year? 4. Refer again to the data in requirement 2 . The president feels that the company must raise the selling price of it Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement 1a), what sell must it charge next year to cover the increased labor costs? 5. Refer to the original data. The company is discussing the construction of a new, automated manufacturing plan would slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the n would be the company's new CM ratio and new break-even point in balls? 6. Refer to the data in requirement 5. a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating incom year? b. Assume the new plant is built and that next year the company manufactures and sells 33,750 balls (the sam year). Prepare a contribution format income statement and compute the degree of operating leverage. Complete this question by entering your answers in the tabs below. Refer again to the data in requirement 2 . The president feels that the company must raise the selling price of its ba If Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement 1 a), what se per ball must it charge next year to cover the increased labor costs? (Round your answer to 2 decimal places.) Neptune Company has developed a small inflatable toy that it is anxious to introduce to its customers. The company's Marketing Department estimates that demand for the new toy will range between 16,000 units and 36,000 units per month. The new toy will sell for $5.00 per unit. Enough capacity exists in the company's plant to produce 19,000 units of the toy each month. Variable expenses to manufacture and sell one unit would be $3.00, and incremental fixed expenses associated with the toy would total $27,000 per month. Neptune has also identified an outside supplier who could produce the toy for a price of $3.75 per unit plus a fixed fee of $20,000 per month for any production volume up to 21,000 units. For a production volume between 21,001 and 41,000 units the fixed fee would increase to a total of $40,000 per month. Required: 1. Calculate the break-even point in unit sales assuming that Neptune does not hire the outside supplier. (Do not round your intermediate calculations.) 2. How much profit will Neptune earn assuming: a. It produces and sells 19,000 units. b. It does not produce any units and instead outsources the production of 19,000 units to the outside supplier and then sells those units to its customers. 3. Calculate the break-even point in unit sales assuming that Neptune plans to use all of its production capacity to produce the first 19,000 units that it sells and that it also commits to hiring the outside supplier to produce up to 17,000 additional units. 4. Assume that Neptune plans to use all of its production capacity to produce the first 19,000 units that it sells and that it also commits to hiring the outside supplier to produce up to 17,000 additional units. a. What total unit sales would Neptune need to achieve in order to equal the profit earned in requirement 2a ? b. What total unit sales would Neptune need to achieve in order to attain a target profit of $13,500 per month? c. How much profit will Neptune earn if it sells 36,000 units per month? d. How much profit will Neptune earn if it sells 36,000 units per month and agrees to pay its marketing manager a bonus of 10 cents for each unit sold above the break-even point from requirement 3 ? 5. If Neptune outsources all production to the outside supplier, how much profit will the company earn if it sells 36,000 units? 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 $62,400 ? 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 the company can sell more units thereby increasing sales by $91,000 per month and ther 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. What is the monthly break-even point in unit sales and in dollar sales? Miller Company's contribution format income statement for the most recent month is shown below: Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 15% ? 2. What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold 15%? 3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by number of units sold decreases by 3% ? 4. What is the revised net operating income if the selling price per unit increases by 10%, variable expenses increase by unit, and the number of units sold decreases by 10% ? would be the company's new CM ratio and new break-even point in balls? 6. Refer to the data in requirement 5. a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, year? b. Assume the new plant is built and that next year the company manufactures and sells 33,750 balls (the same year). Prepare a contribution format income statement and compute the degree of operating leverage. Complete this question by entering your answers in the tabs below. Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $3.00 per this change takes place and the selling price per ball remains constant at $25.00, what will be next year's CM ratio and break-even point in balls? (Round "CM Ratio" to 2 decimal places and round "Unit sales to break even" up to the nearest whole unit.) 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 $62,400 ? 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 the company can sell more units thereby increasing sales by $91,000 per me 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. Verify your answer by preparing a contribution format income statement at the target sales level. 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 $62,400 ? 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 the company can sell more units thereby increasing sales by $91,000 per month and ther 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. What is the company's CM ratio? If the company can sell more units thereby increasing sales by $91,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? point in balls? 3. Refer to the data in requirement 2 . If the expected change in variable expenses takes place, how many balls will have to next year to earn the same net operating income, $106,500, as last year? 4. Refer again to the data in requirement 2 . The president feels that the company must raise the selling price of its baskett Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement 1a), what selling price must it charge next year to cover the increased labor costs? 5. Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The ne would slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the new plant would be the company's new CM ratio and new break-even point in balls? 6. Refer to the data in requirement 5. a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $106,5 year? b. Assume the new plant is built and that next year the company manufactures and sells 33,750 balls (the same numbe year). Prepare a contribution format income statement and compute the degree of operating leverage. Complete this question by entering your answers in the tabs below. Refer to the data in requirement 5 . If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $106,500, as last year? (Round your answer up to the nearest whole unit.) point in balls? 3. Refer to the data in requirement 2 . If the expected change in variable expenses takes place, how many balls will have next year to earn the same net operating income, $106,500, as last year? 4. Refer again to the data in requirement 2 . The president feels that the company must raise the selling price of its basket Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement 1a), what selling price must it charge next year to cover the increased labor costs? 5. Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The would slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the new plant would be the company's new CM ratio and new break-even point in balls? 6. Refer to the data in requirement 5. a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $106,5 year? b. Assume the new plant is built and that next year the company manufactures and sells 33,750 balls (the same number year). Prepare a contribution format income statement and compute the degree of operating leverage. Complete this question by entering your answers in the tabs below. Compute (a) last year's CM ratio and the break-even point in balls, and (b) the degree of operating leverage at last year's sales level. (Round "Unit sales to break even" up to the nearest whole unit and other answers to 2 decimal places.)