Q5 Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Contribution margin Fixed expenses Operating income Total $481,500 192,600 Per Unit $30 12 288,900 $ 18 231,120 $ 57,780 2. Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin 3. Using the cost formula stated in part 2, estimate total overhead costs for a month where direct labour-hours are expected to be 3,900. (Round your Variable cost per direct labor hour to 2 decimal places and round your final answer to the nearest whole dollar amount.) Required: 1. What is the monthly break-even point in unit sales and in dollar sales? (Do not round intermediate calculations.) Total overhead costs Break-even point in unit sales Break-even point in sales dollars units
Q5 Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Contribution margin Fixed expenses Operating income Total $481,500 192,600 Per Unit $30 12 288,900 $ 18 231,120 $ 57,780 2. Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin 3. Using the cost formula stated in part 2, estimate total overhead costs for a month where direct labour-hours are expected to be 3,900. (Round your Variable cost per direct labor hour to 2 decimal places and round your final answer to the nearest whole dollar amount.) Required: 1. What is the monthly break-even point in unit sales and in dollar sales? (Do not round intermediate calculations.) Total overhead costs Break-even point in unit sales Break-even point in sales dollars units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please step by step solution.
Transcribed Image Text:Q5 Menlo Company distributes a single product. The company's sales and expenses for last month follow:
Sales
Variable expenses
Contribution margin
Fixed expenses
Operating income
Total
$481,500
192,600
Per Unit
$30
12
288,900
$ 18
231,120
$ 57,780
2. Without resorting to computations, what is the total contribution margin at the break-even point?
Total contribution margin
3. Using the cost formula stated in part 2, estimate total overhead costs for a month where direct labour-hours are expected to be
3,900. (Round your Variable cost per direct labor hour to 2 decimal places and round your final answer to the nearest whole dollar
amount.)
Required:
1. What is the monthly break-even point in unit sales and in dollar sales? (Do not round intermediate calculations.)
Total overhead costs
Break-even point in unit sales
Break-even point in sales dollars
units
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education