6 2 points Sales Variable expenses Contribution margin Fixed expenses Total Per Unit $ 306,000 $ 20 214, 200 14 91,800 $ 6 73,800 Net operating income $ 18,000 eBook Required: Print References 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 $38,400? 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 dollar and percentage terms. 5. What is the company's CM ratio? If the company can sell more units, thereby increasing sales by $98,000 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 Req 2 Req 3A Req 3B Req 4 Req 5 What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit sales Break-even point in dollar sales units stomer Care specialist x Bloomerang Customer Sup x M Fwd: Claims Support Speci x Indeed Resume x ACG2071 (5)-Managerial x с ezto.mheducation.com/ext/map/index.html?_con-con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware% Chapter 5- Assignment 5 2 points Saved Outback Outfitters sells a small camp stove for $110 per unit. Variable expenses are $77 per unit, and fixed expenses total $158,400 per month. Required: eBook Print References 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume the fixed expenses remain unchanged.) 3. At present, the company is selling 17,000 stoves per month. The sales manager is convinced a 10% reduction in the selling price would result in a 25% increase in unit sales. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. 4. Refer to the data in Required 3. How many stoves would have to be sold at the new selling price to attain a target profit of $77,000 per month? Mc Graw Hill 1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What is the break-even point in unit sales and in dollar sales? Break-even point in unit sales Stoves Break-even point in dollar sales @ 72 个 Required 1 Required 2 > M 44 C $ #3 9 W e B N 55 < Prev 5 of 6 Next > acer Oll 66 & 29 7 r t y U 8* ~の 9 ( 0 O

6 2 points Sales Variable expenses Contribution margin Fixed expenses Total Per Unit $ 306,000 $ 20 214, 200 14 91,800 $ 6 73,800 Net operating income $ 18,000 eBook Required: Print References 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 $38,400? 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 dollar and percentage terms. 5. What is the company's CM ratio? If the company can sell more units, thereby increasing sales by $98,000 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 Req 2 Req 3A Req 3B Req 4 Req 5 What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit sales Break-even point in dollar sales units stomer Care specialist x Bloomerang Customer Sup x M Fwd: Claims Support Speci x Indeed Resume x ACG2071 (5)-Managerial x с ezto.mheducation.com/ext/map/index.html?_con-con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware% Chapter 5- Assignment 5 2 points Saved Outback Outfitters sells a small camp stove for $110 per unit. Variable expenses are $77 per unit, and fixed expenses total $158,400 per month. Required: eBook Print References 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume the fixed expenses remain unchanged.) 3. At present, the company is selling 17,000 stoves per month. The sales manager is convinced a 10% reduction in the selling price would result in a 25% increase in unit sales. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. 4. Refer to the data in Required 3. How many stoves would have to be sold at the new selling price to attain a target profit of $77,000 per month? Mc Graw Hill 1 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What is the break-even point in unit sales and in dollar sales? Break-even point in unit sales Stoves Break-even point in dollar sales @ 72 个 Required 1 Required 2 > M 44 C $ #3 9 W e B N 55 < Prev 5 of 6 Next > acer Oll 66 & 29 7 r t y U 8* ~の 9 ( 0 O

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter20: Variable Costing For Management Analysis

Section: Chapter Questions

Problem 20.10EX

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