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Wesley Company manufactures and sells a single product. The company's income statement at sales level of 5,000 units for last quarter follows: Sales Less: Variable
Wesley Company manufactures and sells a single product. The company's income statement at sales level of 5,000 units for last quarter follows: Sales Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income Total $450,000 270,000 180,000 90,000 $ 90,000 Required: 1. What is the monthly break-even point in units sold and in sales dollars? (Round your intermediate calculations and final answers to the nearest whole number.) Break-even Point Break-even point in units sold Break-even point in sales dollars 5. What is the company's CM ratio? If quarterly sales decrease by $18,000 and there is no change in fixed expenses, what would you expect the quarter's net operating income to be? (Do not prepare an income statement; use the CM ratio to compute your answer.) CM ratio % Net operating income
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