Question
Menlo Company distrubutes a single product. The company's sales and expenses for last month follow: Sales $316, 000, per unit $20 Variable expenses 221,200 and
Menlo Company distrubutes a single product. The company's sales and expenses for last month follow: Sales $316, 000, per unit $20 Variable expenses 221,200 and 14 per unit Contribution margin 94,800 $6 Fixed expenses 74,400 Net operating income 20,400 1.what is the monthly break even point in unit sales and in dollar sales?2.Without resorting to computations, what id the total contribution margin at the break ever point? 3) How many units have to be sold each month to attain a target profit of $ 39,600? 4.Verify your answer by preparing a contribution format income statement at the target sales level. 5) what is the company's CM ratio? If sales increase by 81,000 per month and there is no change in fixed expense. by how much would expect monthly net operating income to increase?
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