**Instructions:**a. Only whole numbers are to be entered as answers. Therefore, DO NOT put any signs in such as $, %, #, or a comma, etc. in your answer. For example, if your answer is $1234 you should write 1234 as your answer and if your answer is 4%, write 4 as your answer.b. Indicate a negative number by putting a minus sign in front. Therefore, if your answer is negative 1234 you need to post -1234 as your answer.c. Round your answer to the nearest whole number, i.e., no decimal points. So if your answer is 1234.60 you should write 1235.---**Menlo Company Analysis:**Menlo Company distributes a single product. The company’s sales and expenses for last month follow:| Description | Total | Per Unit ||---------------------------|----------|-----------|| Sales | 628,000 | $40 || Variable expenses | 439,600 | $28 || Contribution margin | 188,400 | $12 || Fixed expenses | 150,000 | || Net operating income | 38,400 | |---**Required:**1. What is the monthly break-even point in unit sales?2. What is the total contribution margin at the break-even point?3. How many units would have to be sold each month to attain a target profit of $56,400?4. Refer to the original data. Compute the company’s margin of safety in dollar terms.5. If sales increase by $90,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?

Name: **Instructions:**a. Only whole numbers are to be entered as answers.
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Description: **Instructions:**a. Only whole numbers are to be entered as answers. Therefore, DO NOT put any signs in such as $, %, #, or a comma, etc. in your answer. For example, if your answer is $1234 you should write 1234 as your answer and if your answer is

Break-even point (In units) = Fixed Costs / Contribution margin per unit = $150000 / $12 = 12,500…

Answered: Required: 1. What is the monthly…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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(20 pts) Given: Selling price $50/unit, total fixed expenses $95,000, variable expenses $40/unit. A) Find the BEP in Units and in Dollars. Assume the above variable expenses are reduced by 25% and the total fixed expenses are increased by 10%. B) Find the sales in units to achieve a profit of $30,000 assuming that the selling price stays the same. C) Find the net income if activity volume increases by 20%, assuming total sales are $32,000, variable expenses are $12,000, and fixed expenses are $20,000. (Unrelated to A&B)
Lindon Company is the exclusive distributor for an automotive product selling for $22.00 per unit with a CM ratio of 30%. The company's fixed expenses are $105,600 per year and it plans to sell 17,400 units this year. Required: 1. What are the variable expenses per unit? Note: Round your "per unit" answer to 2 decimal places. 2. What is the break-even point in unit sales and in dollar sales? 3. What amount of unit sales and dollar sales is required to attain a target profit of $39,600 per year? 4. Assume by using a more efficient shipper, the company can reduce its variable expenses by $2.20 per unit. What is the company's new break-even point in unit sales and dollar sales? What dollar sales are required to attain a target profit of $39,600? 1. Variable expense per unit 2. Break-even point in units 2. Break-even point in dollar sales 3. Unit sales needed to attain target profit 3. Dollar sales needed to attain target profit 4. New break-even point in unit sales 4. New break-even point…
How many units would have to be sold each month to attain a target profit of 35,400
Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $80 per unit and has a CM ratio of 40%. The company's fixed expenses are $360,000 per year. The company plans to sell 13,000 knapsacks this year. Required: 1. What are the variable expenses per unit? Variable expenses per unit 2. Use the equation method for the following: a. What is the break-even point in units and in sales dollars? Break-even point in units Break-even point in sales dollars
Dominic's Deli recently calculated its annual break-even sales revenue to be $280,000. For each dollar of sales revenue, $0.40 goes to cover variable costs. a. Compute the contribution margin ratio. b. Compute the total fixed costs. c. Compute the sales revenue that would have to be generated to earn an operating income of $144,000. a. Contribution margin ratio b. Total fixed costs c. Sales revenue 60 %
New information suggests that Holliday Ltd’s monthly fixed costs will rise to £230,000. Marginal cost per unit will remain at £76 and expected demand is still 5,000 units. If at least £60,000 of profit is required by shareholders per month, what is the minimum selling price the company will have to charge per unit? a. £134 b. £143 c. £116 d. £58
please step by step solution.
Please help with bullet 5 and 6
Help me solve the requirement below
1.) refer to the original data. Compute the company's margin of safety in both dollar and percentage terms ? 2.) what is the company's cm ratio? If he company can sell more units thereby increasing sales by $84000 per month and there is no change in fixed expense, by how much would you expect monthly net operating income to increase?
1-Due to an increase in labor rates, the company estimates that variable expenses will increase by $3 per ball next year. If this change takes place and the selling price per ball remains constant at $25, what will be the new CM ratio and break-even point in balls? 2. Refer to the data in (2) above. If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, $90,000, as last year? 3. Refer again to the data in (2) above. The president feels that the company must raise the selling price of its basketballs. If Northwood Company wants to maintain the same CM ratio as last year, what selling price per ball must it charge next year to cover the increased labor costs?
I need help with parts 1 and 2

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