Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

what is sales and variable expenses Hel Assignment 4-2 Week 4 Practice Per Total ini4 $624,000 436,800 $40 Sales Variable expenses 28 $12 Contribution margin

image text in transcribed

image text in transcribed

what is sales and variable expenses

Hel Assignment 4-2 Week 4 Practice Per Total ini4 $624,000 436,800 $40 Sales Variable expenses 28 $12 Contribution margin polnts 187,200 Fixed expenses 150,000 $ 37,200 Net operating income eBook 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 $56,400? 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 sales increase by $73,000 per month and there is no change in fixed expenses, would you expect monthly net operating income to increase? References Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Req 4 Req 5 LAc 3 3 4. Refer to the original data. Compute the compary's margin of safety in both dollar and percentage terms 5. What is the company's CM ratio? If sales increase by $73,000 per month and there is no change in fixed exp would you expect monthly net operating income to increase? 5 Cormplete this question by entering your answers in the tabs below. points Req 1 Req 2 Req 3A Req 3B Req 4 Req 5 eBook Print Verify your answer by preparing a contribution format income statement at the target sales level. References Menlo Company Contribution Income Statement Total Per Unit 40 Sales 28 Variable expenses 0 12 Contribution margin Fixed expenses 0 Net operating income Req 3A Req 4 Mc Graw

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

Audit Skill Management Ref PPAP ISO 9000 And ISO 14000 Series

Authors: FULBODH CHAUDHARY

1st Edition

1520470843, 978-1520470849

More Books

Students also viewed these Accounting questions