What is the monthly break-even point in unit sales and in dollar sales?Break-even point in unit salesunitsBreak-even point in dollar sales 3-a. How many units would have to be sold each month to attain a target profit of $35,400?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 $60,000 per month and there is nochange in fixed expenses, by how much would you expect monthly net operating income to increase?Answer is not complete.Complete this question by entering your answers in the tabs below.Req 1Req 2Req 3AReq 3BReq 4What is the monthly break-even point in unit sales and in dollar sales?Break-even point in unit salesBreak-even point in dollar salesunitsReq 5Req 2 >Return Menlo Company distributes a single product. The company's sales and expenses for last month follow:SalesVariable expensesContribution marginFixed expensesNet operating incomeTotal$ 308,000215,60092,40075,600$ 16,800PerUnit$ 2014$6Required: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 $35,400?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 $60,000 per month and there is nochange in fixed expenses, by how much would you expect monthly net operating income to increase?Answer is not complete.Complete this question by entering your answers in the tabs below.

Introduction:- CVP analysis is used to identify the changes in costs and volume affect a company's…

Answered: Required: 1. What is the monthly…

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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Compute the break-even point in sales dollars for the company as a whole and the margin of safety in both dollars and percentage of sales.
Question 5 ) Answer with Formulas
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.)
If a company raises its target peso profit, its A. break-even point rises.B. fixed costs increase.C. required total contribution margin increases.D. selling price rises
Break-Even Units and Sales Revenue: Margin of Safety Dupli-Pro Copy Shop provides photocopying service. Next year, Dupli-Pro estimates it will copy 2,890,000 pages at a price of $0.06 each in the coming year. Product costs include: Direct materials Direct labor Variable overhead Total fixed overhead $0.009 $0.003 $0.001 $84,320 There is no variable selling expense; fixed selling and administrative expenses total $36,000.
A mark up of 15% on sales is equivalent to what markup on cost?
Would an increase in per-unit selling price cause a company’s break-even point to increase or decrease? Why?
Break-even point Radison Inc. sells a product for $74 per unit. The variable cost is $43 per unit, while fixed costs are $182,590. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $81 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $81 per unit units
variable expense is $12 per unit. The company Required: 1. 2. 3. 4. Solve for the company's break-even point in unit sales using the equation method. Solve for the company's break-even point in sales dollars using the equation method and CM ratio. Solve for the company's break-even point in unit sales using the formula method. Solve for the company's break-even point in sales dollars using the formula method and CM ratio. EXERCISE 6-8 Compute the Margin of Safety [LO7] Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning next month's budget appear below: Selling price $30 per unit Variable expenses $20 per unit Fixed expenses Unit sales $7,500 per month 1,000 units per month Required: 1. Compute the company's margin of safety. 2. Compute the company's margin of safety as a percentage of its sales. EXERCISE 6-9 Compute and Use the Degree of Operating Leverage [L08] Engberg Company installs lawn sod in home yards. The company's most recent…
If a company decides to increase its selling price by $4 per unit because of an increase in its variable labor cost of $4 per unit, what impact will these two changes have on the break-even volume in units?
Which of the following statements is not correct? All other things remaining the same A. equal percentage increases in both the selling price and variable cost per unit will cause the contribution margin ratio to remain unchanged B. equal peso increases in both the selling price and variable cost per unit will cause the break-even point in units to remain unchanged C. equal peso increases in both the selling price and variable cost per unit will cause the break-even point in pesos to remain unchanged D. equal percentage increases in both the selling price and variable cost per unit will cause the break-even point in sales pesos to remain unchanged
2. On the basis of French's revised information, what does next year look like: a. What is the break-even point? 1,035,688 units Sales at full capacity (units) Sales volume (units) Unit sales price ($) Sales revenue ($) Variable cost per unit ($) Contribution margin per unit ($) Total variable cost ($) Fixed costs ($) Profit ($) Ratios Variable cost to sales Unit Contribution to sales Utilization of capacity (%) Break even point (units) Aggregate 2,000,000 1,750,000 6.948 12,160,000 3.385 3.56 5,925,000 3,690,000 2,545,000 0.49 0.51 87.5 1,035,688.312 A 400,000 $10 4,000,000 7.5 2.5 3,000,000 960,000 40,000 0.75 0.25 20 384,000 Product Lines B 400,000 $9 3,600,000 3.75 5.25 1,500,000 1,560,000 540,000 0.42 0.58 20 297,143 C 950,000 $4.80 4,560,000 1.5 3.3 1,425,000 1,170,000 1965000 0.31 0.69 47.5 354,545

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