Whirly Corporations contribution format income statement for the most recent month is shown below:

	Total			Per Unit
Sales (8,200 units)	$	262,400		$	32.00
Variable expenses		155,800			19.00
Contribution margin		106,600		$	13.00
Fixed expenses		54,800
Net operating income	$	51,800

Last month when Holiday Creations, Inc., sold 39,000 units, total sales were $300,000, total variable expenses were $228,000, and fixed expenses were $37,500.

Required:

1. What is the companys contribution margin (CM) ratio?

2. What is the estimated change in the companys net operating income if it can increase total sales by $1,300? (Do not round intermediate calculations.)

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Mauro Products distributes a single product, a woven basket whose selling price is $18 per unit and whose variable expense is $15 per unit. The companys monthly fixed expense is $5,400.

Required:

1. Calculate the companys break-even point in unit sales.

2. Calculate the companys break-even point in dollar sales. (Do not round intermediate calculations.)

3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.)

Required:

(Consider each case independently):

1. What would be the revised net operating income per month if the sales volume increases by 80 units?

2. What would be the revised net operating income per month if the sales volume decreases by 80 units?

3. What would be the revised net operating income per month if the sales volume is 7,200 units?

Lin Corporation has a single product whose selling price is $135 per unit and whose variable expense is $81 per unit. The companys monthly fixed expense is $23,700.

Required:

1. Calculate the unit sales needed to attain a target profit of $6,000. (Do not round intermediate calculations.)

Lindon Company is the exclusive distributor for an automotive product that sells for $34.00 per unit and has a CM ratio of 30%. The companys fixed expenses are $193,800 per year. The company plans to sell 21,600 units this year.

Required:

1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.)

2. What is the break-even point in unit sales and in dollar sales?

3. What amount of unit sales and dollar sales is required to attain a target profit of $91,800 per year?

4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.40 per unit. What is the companys new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $91,800?

2. Calculate the dollar sales needed to attain a target profit of $9,300. (Round your intermediate calculations to the nearest whole number.)

1. Variable expense per unit 2. Break-even point in units Break-even point in dollar sales 3. Unit sales needed to attain target profit Dollar sales needed to attain target profit 4. New break-even point in unit sales New break-even point in dollar sales Dollar sales needed to attain target profit