Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total $ 628,000 439,600 188,400 153,600 $ 34,800 Per Unit

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total $ 628,000 439,600 188,400 153,600 $ 34,800 Per Unit $ 40 28 $ 12 Sales Variable expenses Contribution margin Pixed expenses Net operating income 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 $73,200? 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 $73,000 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. Reg 3B Reg 4 Reg 5 Reg 1 Reg 2 Req What is the monthly break-even point in unit sales and in dollar sales? units Break-even point in unit sales Break-even point in dollar sales Real Reg 2 > 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 $ 628,000 439,600 188,400 153,600 $ 34,800 Per Unit $ 40 28 $ 12 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 $73,200? 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 $73,000 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. Reg 1 Reg 2 Req 3A Req 3B Reg 4 Reg 5 without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin 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 $ 628,000 439,600 188,400 153,600 $ 34,800 Per Unit $ 40 28 $ 12 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 $73,200? 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 $73,000 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. Reg 1 Reg 2 Req Req 38 Req 4 Reg 5 How many units would have to be sold each month to attain a target profit of $73,2007 Units sales needed to attain target profit Menlo Company distributos a single product. The company's sales and expenses for last month follow Per Unt $ 40 Sales Variable expenses Contribution margin Fed expenses Net operating income Total $ 628.000 430 000 188.400 153.600 $34.800 $ 12 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? 3b. Verily your answer by preparing a contribution format income statement at the twget sales tevel 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? It the company can sel more units thereby increasing sales by 573,000 per month and there is no change in feed expenses, by how much would you expect monthly net eperating income to increase? Complete this question by entering your answers in the tabs below. Reg1 Reg2 RA Ree Res Verify your answer by preparing a contribution format income statement at the target sales level Menta Company Contribution Income Statement Total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Theory Contemporary Accounting Issues

Authors: Thomas G. Evans

1st Edition

0324107846, 9780324107845

More Books

Students also viewed these Accounting questions

Question

4 How can employee involvement be achieved?

Answered: 1 week ago