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 $ 632,000 442,400 189,600 146,400 $ 43,200 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 $ 632,000 442,400 189,600 146,400 $ 43,200 Per Unit $ 40 28 $ 12 Sales Variable expenses Contribution margin Fixed 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 $70,800? 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 $92,000 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 5 Req: Reg 2 Red 3A Reg 38 Reg 4 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 Reg 2 > Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total 5 632,000 442.400 189,600 146,400 $ 43,200 Per Unit $ 40 28 $ 12 Sales Variable expenses Contribution margin Fixed 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 $70,800? 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 $92,000 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 Red 3A Reg 38 Reg 4 Req5 without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin Reg1 ReqSA > 1 Menlo Company distributes a single product. The company's sales and expenses for last month follow: Per Unit $40 Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 632.000 442,400 189,600 146,400 $ 43,200 28 $ 12 Book Print 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 $70,800? 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 $92,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? erences Complete this question by entering your answers in the tabs below. Req1 Reg 2 Reg 3A Req 38 Reg 4 Reg 5 How many units would have to be sold each month to attain a target profit or $70,800? Units sales needed to attain target profit Reg2 Reg 38 > 1 Sales Variable expenses Contribution margin Fixed expenses Het operating income Total $ 632,000 442,400 189,600 146,400 $43,200 Per Unit $ 40 28 $ 12 Book 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? 3-3. How many units would have to be sold each month to attain a target profit of $70,800? 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 $92,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Print ferences Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 36 Reg 4 Reg 5 verify your answer by preparing a contribution format income statement at the target sales level. Menlo Company Contribution Income Statement Total Per Unit Prev 1 of 2 HE Next > Sales Variable expenses Contribution margin Fixed expenses Net operating Income Total $ 632,000 442,400 189,600 146,400 $ 43,200 Per Unit $40 20 512 ak 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 $70,800? 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 $92,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? 1 ces Complete this question by entering your answers in the tabs below. Req! Reg 2 RegJA Reg 38 Req Reqs 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 (.e. 0.1234 should be entered as 1234) Dollars Percentage Margin of safety Total $ 632,000 442,400 189,600 146,400 $ 43,200 Per Unit $40 28 $.12 Sales Variable expenses Contribution margin Fixed expenses Not 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? 3-2. How many units would have to be sold each month to attain a target profit of $70,800? 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 $92,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? cos Complete this question by entering your answers in the tabs below. REQ 3A Reg 1 Reg 2 Req 30 Reg 4 Req5 What is the company's CM ratio? If the company can sell more units thereby increasing sales by $92,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? %6 CM ratio Net operating income increases by

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

Valuation For Accountants A Short Course Based On IFRS

Authors: Stephen Lynn

1st Edition

9811503567, 9789811503566

More Books

Students also viewed these Accounting questions