3 Menlo Company distributes a single product. The company's sales and expenses for last month follow:PerUnitSalesVariable expensesContribution marginFixed expensesNet operating incomeTotal$ 450,000180,000270,000216,000$ 54,000Required: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 $90,000?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 $50,000 per month, and there is nochange in fixed expenses, by how much would you expect monthly net operating income to increase?Req 1Complete this question by entering your answers in the tabs below.Req 2$ 3012$18Req 3AReq 3BWhat is the monthly break-even point in unit sales and in dollar sales?Break-even point in unit salesBreak-even point in dollar salesunitsReq 4< Req 1Req 5Req 2 >

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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Chapter3: Cost-volume-profit Analysis

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Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...

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Verify your answer by preparing a contribution format income statement at the target sales level.
Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses. Contribution margin Fixed expenses Net operating income Total $ 624,000 436,800 187,200 146,400 $ 40,800 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? Req 1 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 $61,200? Req 2 Per Unit 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 the company can sell more units thereby increasing sales by $64,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? $ 40 28 $ 12 Complete this…
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Smithen Company, a wholesale distributor, has been operating for only a few months. The company sells three products-sinks, mirrors, and vanities. Budgeted sales by product and in total for the coming month are shown below based on planned unit sales as follows: Sinks Mirrors Vanities Total Units 1,000 500 500 2,000 Percentage of total sales Sales Variable expenses Contribution margin Contribution margin per unit Fixed expenses Operating income Break-even point in unit sales: Percentage sex 25% 25% 100% Break-even point in sales dollars: Total Fixed expenses. Weighted-average CM per unit Sinks 48% Product Mirrors 20% $264,000 100.00% $110,000 100.00% $176,000 100.00% $550,000 100.00% 80,000 30.30% 72,000 65.45% 82,000 46.59% 219,300 39.87% 53.41% 60.13% $184,000 $ 94,000 330,700 69.70% 38,000 34.55% S 76.00 $ 184.00 $ 188.00 Fixed expenses Overall CM ratio $293,300 $158.00 Vanities 32% $293,300 0.60 1,856.33 units Total 100% 293,300 $ 37,400 = $487,798.61 *($184.00 0.50) + ($76.00 x…
A U Ltd manufactures and sells a single product, the company's sales and expenses for themonth of January 2021 were as follows:Total (Kshs)Value per unit (Kshs)Sales1.200.0080.00Less: Variable expenses840.0056.00Contribution360.0024.00Less: Fixed expenses300.00Net income60.00Required:What is the monthly breakeven point in units and in shillings?What is the total contribution margin at breakeven point?How many units would be sold each month to carn a minimum target net income ofkshs. 36.000?(iv)Using the original data, compute a company's margin of safety in both shilling and in percentage termsWhat is the contribution margin ratio, if the monthly sales increase by Kshs 16,000?
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)
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Without resorting to computations, what is the total contribution margin at the break-even point?
Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit $ 640,e00 Sales variable expenses $ 40 448, e00 28 Contribution margin 192,e00 $ 12 Fixed expenses 154,800 Net operating income 37, 200 Requlred: 1. What Is the monthly break-even polnt In unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3. How many units would have to be sold each month to attaln a target profit of $61,200? 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 ratlo? If the company can sell more units thereby Increasing sales by $65,000 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 2 Reg 3 Req 1 Req 4 Req 5 What is the monthly break-even point in…
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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Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,600 unita) Variable expenses Total $ 243,200 136, 800 Per Unit $32.00 18.00 Contribution nargin 106,400 $ 14.00 ried expenses 55,000 5 51,400 et operating Lncone Required: (Consider each case independently): 1 What would be the revised net operating income per month if the sales volume increases by 50 units? 2 What would be the revised net operating income per month if the sales volume decreases by 50 units? 3. What would be the revised net operating income per month if the sales volume is 6,600 units? 1. Revined net operating income 2. Revised net operating income 3. Revised net operating income

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