4. Refer to part 3 and now assume that the tax rate is 30%. How many units would need to be sold each month for an after-tax targetprofit of $99,000? (Round the final answer to the nearest whole number.)Unit sales required5. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. (Round your percentageanswer to 2 decimal places.)Margin of safetyunitsDollars PercentageCM ratioMonthly operating income increases by%6. What is the company's CM ratio? If sales increase by $55,000 per month and there is no change in fixed expenses, by how muchwould you expect monthly net operating income to increase? (Round your percentage answer to 2 decimal places and other answerto the nearest whole dollar amount.)% Menlo Company distributes a single product. The company's sales and expenses for last month follow:Per Unit$ 3012SalesVariable expensesContribution marginFixed expensesOperating incomeBreak-even point in unit salesBreak-even point in sales dollarsRequired:1. What is the monthly break-even point in unit sales and in dollar sales? (Do not round Intermediate calculations.)Units soldTotal$495,000198,000Answer is complete and correct.Total contribution margin $ 237,600297,000237,600$ 59,4002. Without resorting to computations, what is the total contribution margin at the break-even point?Answer is complete and correct.13,200S 396,000SalesVariable expensesContribution marginFixed expensesOperating income3-a. How many units would have to be sold each month to earn a target profit of $99,000? Use the formula method.Answer is complete and correct.18,700 units333333-b. Verify your answer by preparing a contribution format income statement at the target sales level.SAnswer is complete and correct.Menlo CompanyContribution Income Statement$ 18Total$561,000units(224,400)✔336,600(237,600)99,000>Perunit$3012$ 18

The contribution margin is calculated as the difference between the sales and variable costs. The…

Answered: Menlo Company distributes a single…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Data concerning Strite Corporation's single product appear below: Selling price per unit Variable expense per unit Fixed expense per month Assume the company's target profit is $8,000. The dollar sales to attain that target profit is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $1,532,857 $429,200 $596,111 $ 150.00 $ 42.00 $ 421,200 $852,723
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total Per Unit Sales $ 616,000 $ 40 Variable expenses 431,200 28 Contribution margin 184,800 $ 12 Fixed expenses 151,200 Net operating income $ 33,600 Required: 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 $62,400? 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 both dollar and percentage terms. 5. What is the company’s CM ratio? If the company can sell more units thereby increasing sales by $76,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?
Publix sold 1,000 units last month which yielded the income statement below. Sales $20,000 Variable Expenses 12,000 Contribution Margin 8,000 Fixed Expenses 6,000 $2,000 Net Income Answer the questions that follow using the given information. 1. What is Publix's contribution margin per unit? 2. What is the contribution margin ratio? 3. What is the break-even point in units? 4. What is the break-even point in dollars? 5. How many units have to be sold to reach a target profit of $5,000?
income statement total per unit Units 44,000 1 Sales $220,000 $5.00 Cost of Sales(variable expenses) 88,000 2.00 Gross Margin 132,000 3.00 Operating Costs(fixed expneses) 125,500 2.85 Net Profit 6,500 15 Now do this activity a second time with a higher selling price. Calculate break-even at a $7.00 selling price. Using the information from the above income statement, calculate the break-even per unit, the gross margin percent, and the break-even total sales. Calculate break-even based on units. Fixed Costs/ (Sales price per unit – Variable costs per unit) = Break Even in Units Calculate break-even based on Total Sales. Gross Margin/ Sales = Gross…
The Abigail Company produces and sell two products, X and Y. Cost and revenue data on the products follow: Product X Product Y P24 Selling price per unit Variable cost per unit Contribution margin per unit P20 12 6. P8 P18 In the most recent month, the company sold 400 units of Product X and 800 units of Product Y. Fixed expenses are P10,000 per month. REQUIRED: 1. Prepare a comparative income statement for both products on the most recent monthly projections. 2. Compute the company's overall monthly break-even point in peso sales.
2. A company sells a single product at a price of $20 per unit. Variable expenses are$12 per unit. The company’s contribution format income statement for the mostrecent month follows:Total Per UnitSales (15,000 units) $300,000 $20Variable expenses 180,000 12Contribution margin 120,000 $8Fixed expenses 100,000Net operating income $20,000If the company sells 16,500 units next month, what should be the company’s totalcontribution margin? Show your calculations. Suggested approach: Total number of units sold × Unit CM **Pls help me im clear soultion with accurate answers pls thank u
shobha
Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,800 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 265,200 148, 200 117,000 55,700 $ 61,300 Required: (Consider each case independently): Per Unit $ 34.00 19.00 $15.00 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 2. What would be the revised net operating income per month if the sales volume decreases by 90 units? 3. What would be the revised net operating income per month if the sales volume is 6,800 units?
Data concerning Follick Corporation's single product appear below: Selling price per unit $ 200.00 Variable expense per unit $ 72.00 Fixed expense per month $ 135,680 The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)
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Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 33.00 18.00 $ 15.00 Sales (8,800 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): Total $ 290,400 158,400 132,000 54,100 $ 77,900 1. What would be the revised net operating income per month if the sales volume increases by 40 units? 2. What would be the revised net operating income per month if the sales volume decreases by 40 units? 3. What would be the revised net operating income per month if the sales volume is 7,800 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income

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