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Mc Graw Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Contribution margin Fixed expenses Net
Mc Graw 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 $ 318,000 222,600 95,400 75,000 $ 20,400 Per Unit $ 20 14 $6 Saved 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 $30,600? 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. Complete this question by entering your answers in the tabs below.
Menio Company distributes a single product. The company's sales and expenses for lost month follow. Required: 1. What is the monthly break-even point in unit sales and in doller soles? 2. Without resorting to computations, whot is the total contribution margin at the bieakieven point? 3 a. How many units would have to be sold each month to altain a target profit of $30,600 ? 3 -b. Verify your answer by preparing a contribution formot income statement ot the target sales level 4. Refer to the original data. Compute the companys margin of safety in dollat and percentage terme 5 . What is the company s CM rodo? it the company con seil more units, thereby increasing sales by 590,000 per monthy and thete is ho change in fiked expenses, by how much would you expect monthly net operating income to increoset Complete this question by entering your answers in the tabs belowStep by Step Solution
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