Required information Exercise 6-16 (Static) Break-Even Analysis and CVP Graphing (LO6-2, LO6-4, LO6-5] [The following information applies to the questions displayed below.] The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected costs for the event: Dinner (per person) Favors and program (per person) Band Rental of ballroom Professional entertainment during intermission Tickets and advertising $ 18 $ 2 $ 2,800 $ 900 $ 1,000 $ 1,300 The committee members would like to charge $35 per person for the evening's activities. Exercise 6-16 (Static) Part 1 Required: 1. What is the break-even point for the dinner-dance (in terms of the number of persons who must attend)? 2. Assume that last year only 300 persons attended the dinner-dance. If the same number attend this year, what price per ticket must be charged in order to break even? persons 1. Break-even point 2. Ticket price per person to break even Exercise 6-18 (Static) Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio (LO6-1, LO6-3, LO6-5, LO6-6, LO6-7 Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total $ 450,000 180,000 Per Unit $ 30 12 $ 18 Sales Variable expenses Contribution margin Fixed expenses Net operating income 270,000 216,000 $ 54,000 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 $90,000? 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 $50,000 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 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 Req1 Req 2 > Exercise 6-18 (Static) Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio (LO6-1, LO6-3, LO6-5, LO6-6, LO6-7 Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total $ 450,000 180,000 Per Unit $ 30 12 $ 18 Sales Variable expenses Contribution margin Fixed expenses Net operating income 270,000 216,000 $ 54,000 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 $90,000? 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 $50,000 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. Req 1 Reg 2 Req 3A Reg 3B Reg 4 Reg 5 Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin Exercise 6-18 (Static) Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio (LO6-1, LO6-3, LO6-5, LO6-6, LO6-7 Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total $ 450,000 180,000 Per Unit $ 30 12 $ 18 Sales Variable expenses Contribution margin Fixed expenses Net operating income 270,000 216,000 $ 54,000 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 $90,000? 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 $50,000 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 Req 4 Req 5 How many units would have to be sold each month to attain a target profit of $90,000? Units sales needed to attain target profit
