EXERCISE 5-10 Dreak-Even and Target Profit Analysis; Margin of Safety; CM Ratio LOS-1, LOS-2,Menlo Company distributes a single product. The company's sales and expenses for last month follow:LOS-4, LOS-5, LOS-6Sales...Variable expenses....Contribution marginFixed expenses...Net operating income.ng priceTotalPer Unit$450,000 $30180,00012$18270,000216,000$ 54,000Required:L. 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-evenpoint?3 How many units would have to be sold each month to attain a target profit of $90,000? Verifyyour answer by preparing a contribution format income statement at the target sales level.Refer to the original data. Compute the company's margin of safety in dollar and percentageterms.What is the company's CM ratio? If the company can sell more units, thereby increasing salesby $50,000 per month, and there is no change in fixed expenses, by how much would youexpect monthly net operating income to increase?

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FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Frinner Company has two divisions, A and B, that reported the following results for October: Sales Variable expenses as a percentage of sales .... Segment margin .......... C. d. Division A £90,000 £31,000. £62,000. £93,000. £52,000 70% £2,000 Division B £150,000 If common fixed expenses were £31,000, total fixed expenses must have been a. b. 60% £23,000
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v.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Lo... Break-Even Sales and Sales to Realize a Target Profit For the current year ending October 31, Papadakis Company expects fixed costs of $422,400, a unit variable cost of $46, and a unit selling price of $68. a. Compute the anticipated break-even sales (units). units. b. Compute the sales (units) required to realize a target profit of $96,800. units Check My Work Previous 6 Next Oct 26 6:18
Problem 12-21 (Algo) Prepare a contribution margin format income statement; answer what-if questions LO 12-7, 12-8, 12-9 Shown here is an income statement in the traditional format for a firm with a sales volume of 7,500 units. Cost formulas also are shown: Revenues Cost of goods sold ($5,900 + $2.25/unit) Gross profit Operating expenses: Selling ($1,200 + $0.10/unit) Administrative ($3,500 + $0.20/unit) Operating income $34,400 22,775 $ 11,625 1,950 5,000 $ 4,675 Required: a. Prepare an income statement in the contribution margin format. b. Calculate the contribution margin per unit and the contribution margin ratio. c. Calculate the firm's operating income (or loss) if the volume changed from 7,500 units to 1. 11,250 units. 2. 3,750 units. d. Refer to your answer to part a for total revenues of $34,400. Calculate the firm's operating income (or loss) if unit selling price and variable expenses per unit do not change and total revenues 1. Increase by $14,500. 2. Decrease by $3,000.
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A company reports the following contribution margin income statement. Contribution Margin Income Statement For Year Ended December 31 Sales (19,200 units at $22.50 each) Variable costs (19,200 units at $18.00 each) Contribution margin. Fixed costs Income The manager believes the company can increase sales volume to 22,000 total units by increasing advertising costs by $16,200. Required A Required B Complete this question by entering your answers in the tabs below. Contribution Margin Income Statement For Year Ended December 31 $ 432,000 345,600 Prepare a contribution margin income statement assuming the company incurs the additional advertising costs and sales volume increases to 22,000 units. Sales Variable costs Contribution margin 86,400 64,800 $ 21,600 Fixed costs Income
Assume the following information: Selling price Variable expense ratio Fixed expenses Unit sales Multiple Choice O O How many units need to be sold to achieve a target profit of $16,900? 4,150 units 1,019 units 2,817 units Amount 6,220 units $30 80% $ 8,000 per month 3,400 per month
A. Manufacturing margin? b. Contribution margin? C. Operating income for PhiladelPho's company ?
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aung movie to metast: what are your assumpave. EXERCISE 2-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs L02-1, LO2-4 Miller Company's contribution format income statement for the most recent month is shown below: Required: (Consider each case independently): 3. Sales (20,000 units) Variable expenses. Contribution margin 4. Fixed expenses.. Net operating income. Total $300,000 180,000 120,000 70,000 $ 50,000 EXERCICE Per Unit $15.00 9.00 $ 6.00 38150123 1. What is the revised net operating income if unit sales increase by 15%? 2. What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 25%? po besupp BekadW do 1 What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $20,000, and the number of units sold decreases by 5%? Cuan and Tardot Profit Analveie 102-3-1024 102-5 102-6 og eint 01 stall What is the…
Data concerning Homme Corporation's single product appear below: Per Unit $190 114 $76 Selling price Variable expenses........ Contribution margin Percent of Sales 100% 60% 40% The company is currently selling 2,000 units per month. Fixed expenses are $130,000 per month. Consider each of the following questions independently. This question is to be considered independently of all other questions relating to Homme Corporation. Refer to the original data when answering this question. The marketing manager believes that a $12,000 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? increase of $2,440 decrease of $12,000 increase of $14,440 decrease of $2,440

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