Question
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
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 $775,000 Per Unit $50 542,500 35 232,500 $15 184,500 $48,000 Requirement 1: What is the monthly break-even point in units sold and in sales dollars? (Omit the "$" sign in your response.) Monthly break-even point Sales units Requirement 2: Without resorting to computations, what is the total contribution margin at the break-even point? (Omit the "$" sign in your response.) Total contribution margin at the break-even point Requirement 3: How many units would have to be sold each month to earn a target profit of $76,500? Use the formula method. Units sold Requirement 4: units Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms.(Round your percentage value to 2 decimal places. Omit the "$" and "%" signs in your response.) Margin of safety Requirement 5: Dollars Percentage % What is the company's CM ratio? If sales increase by $53,000 per monthand there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? (Round your percentage value to nearest whole percent. Round your dollar value to the nearest dollar amount. Omit the "$" and "%" signs in your response.) CM ratio Increased net operating income
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