Damien Company manufactures and sells a single product. The company's income statement at level of 20,000 units for last quarter follows: sales Total: $600,000 $420,000 Less: variable expenses Contribution margin $180,000 Less: fixed expenses $150,000 Net operating income $30,000 1. What is the monthly break-even point in units sold and in sales dollars? 2. Refer to the original data. Complete the company's margin of safety for the quarter in units, in dollars and as a percentage of last quarters sales. 3. What is the company's CM ratio? If quarterly sales decrease by &80,000 and there is no change in fixed expenses, what would you expect the quarters net operating income to be? I

Damien Company manufactures and sells a single product. The company's income statement at level of 20,000 units for last quarter follows: sales Total: $600,000 $420,000 Less: variable expenses Contribution margin $180,000 Less: fixed expenses $150,000 Net operating income $30,000 1. What is the monthly break-even point in units sold and in sales dollars? 2. Refer to the original data. Complete the company's margin of safety for the quarter in units, in dollars and as a percentage of last quarters sales. 3. What is the company's CM ratio? If quarterly sales decrease by &80,000 and there is no change in fixed expenses, what would you expect the quarters net operating income to be? I

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 47E: Klamath Company produces a single product. The projected income statement for the coming year is as...

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Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?
what is the dollar sales to attain that target profit is closest to Data concerning Strite Corporation's single product appear below: Selling price per unit Variable expense per unit Fixed expense per month $ 150.00 $ 42.00 $421,200 He Assume the company's target profit is $8,000. The dollar sales to attain that target profit is closest to: (Round your i calculations to 2 decimal places.)
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A company sells one product and its contribution margin ratio is 20%. The company provides the following data regarding their operation: Current sales revenue Expected sales revenue next year Expected increase in net operating income next year $2,760,000 $2,870,400 20% Assuming that there is no change in total fixed expenses, what is the net operating income for the current year? Answer: $(Click to select)
Wesley Company manufactures and sells a single product. The company's income statement at sales level of 25,500 units for last quarter follows: Sales Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income Total $1,020,000 714,000 106,000 249,084 56,916 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 in units sold Break-even point in sales dollars Break even Point
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