problem 4-22

your - 30 p many balls will have to be solde l e in e be your ears the c Marthwood Company wants to maintain th he The president feels that the themes year. bau c hent year to cover the incre The company is using the con c ur red The plant woodland variable expenses pr e u darne e ar to be the new plant is built what we w CM poltin balls? di chowe www plant is buik how many halls will S o , as last year? is it ww.pl that you the com rasast year hepare a contation for the degree of peringkap Explain - Amal Target Profit Analysis Margin of S C M Ratio e s a single pedest. The company's sales and expense month follow w LOL LOLOR LOS LOT d sales dollars Total Permit - and per Actuala od vanities, $450,000 T XO 270.000 216.000 S 54.000 270.000 Variable expenses. Contribution margin. Fi . Operating income SIS ia. Present the pres What is the monthly break-even point in unit sales and in dollar sales? W r esorting to computations, what is the total contribution margin the break-even point? y units have to be alcach month to earn a target proditors. Verify your by preparing a contribution format income Matement the target sales level Referent and now assume that the tax rate is 30%. How many will need to be sold cach month an alertax target profit of $90,000? Role to the original data Compute the company's margin of safety in both dollar and percentage terms. What is the company's CM ratio? Ir sales increase by 550,000 per month and there is no change in findesnes, by how much would you expect monthly net operating income to increase? Target & Present ariable PROBLEM 23 Graphing: Incremental Analysis: Operating Leverage LOLOLOS, LOM, LOS Teilall recently opened Sheer Elegance Inc., a store specializing in fashionable stockings. Hall has just oped a course in managerial accounting, and she believes that she can apply certain aspects of the o her business. She is particularly interested in adopting the CVP approach to decision making Thus, she has prepared the following analysis G Sales price per pair of stockings......... Variable expense per pair of stockings...... Contribution margin per pair of stockings ....... $ 6,00 Fixed expense per year. Baling rental......... Bodit depreciation .... $ 48.000 12.000 120,00 60.000 $240,000 To istrative ...... red expense