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ustomer Care specialist х Bloomerang Customer Sup x M Fwd: Claims Support Spec x Indeed Resume ACG2071 (5)-Managerial x M C ezto.mheducation.com/ext/map/index.html?_con-con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%252 Chapter 5- Assignment 2 6 points Sales Variable expenses Contribution margin Total Per Unit $ 306,000 $ 20 214, 200 14 91,800 $ 6 73,800 Net operating income $ 18,000 Fixed expenses Saved eBook Print References 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 $38,400? 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 dollar and percentage terms. 5. What is the company's CM ratio? If the company can sell more units, thereby increasing sales by $98,000 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. Mc Graw Hill 1 Req 1 Req 2 Req 3A Req 3B Req 4 Req 5 What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit sales Break-even point in dollar sales units @ 12 2 M Req 1 Req 2 > < Prev 6 of 6 Next > M 31 с $ 64 #3 % 95 e r acer Oll 66 28 & o t y u 0 O 8 9 6 10

ustomer Care specialist х Bloomerang Customer Sup x M Fwd: Claims Support Spec x Indeed Resume ACG2071 (5)-Managerial x M C ezto.mheducation.com/ext/map/index.html?_con-con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%252 Chapter 5- Assignment 2 6 points Sales Variable expenses Contribution margin Total Per Unit $ 306,000 $ 20 214, 200 14 91,800 $ 6 73,800 Net operating income $ 18,000 Fixed expenses Saved eBook Print References 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 $38,400? 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 dollar and percentage terms. 5. What is the company's CM ratio? If the company can sell more units, thereby increasing sales by $98,000 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. Mc Graw Hill 1 Req 1 Req 2 Req 3A Req 3B Req 4 Req 5 What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit sales Break-even point in dollar sales units @ 12 2 M Req 1 Req 2 > < Prev 6 of 6 Next > M 31 с $ 64 #3 % 95 e r acer Oll 66 28 & o t y u 0 O 8 9 6 10

FINANCIAL ACCOUNTING
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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ustomer Care specialist х Bloomerang Customer Sup x M Fwd: Claims Support Spec x Indeed Resume ACG2071 (5)-Managerial x M C ezto.mheducation.com/ext/map/index.html?_con-con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%252 Chapter 5- Assignment 2 6 points Sales Variable expenses Contribution margin Total Per Unit $ 306,000 $ 20 214, 200 14 91,800 $ 6 73,800 Net operating income $ 18,000 Fixed expenses Saved eBook Print References 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 $38,400? 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 dollar and percentage terms. 5. What is the company's CM ratio? If the company can sell more units, thereby increasing sales by $98,000 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. Mc Graw Hill 1 Req 1 Req 2 Req 3A Req 3B Req 4 Req 5 What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit sales Break-even point in dollar sales units @ 12 2 M Req 1 Req 2 > < Prev 6 of 6 Next > M 31 с $ 64 #3 % 95 e r acer Oll 66 28 & o t y u 0 O 8 9 6 10
Transcribed Image Text:ustomer Care specialist х Bloomerang Customer Sup x M Fwd: Claims Support Spec x Indeed Resume ACG2071 (5)-Managerial x M C ezto.mheducation.com/ext/map/index.html?_con-con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmiddleware%252 Chapter 5- Assignment 2 6 points Sales Variable expenses Contribution margin Total Per Unit $ 306,000 $ 20 214, 200 14 91,800 $ 6 73,800 Net operating income $ 18,000 Fixed expenses Saved eBook Print References 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 $38,400? 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 dollar and percentage terms. 5. What is the company's CM ratio? If the company can sell more units, thereby increasing sales by $98,000 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. Mc Graw Hill 1 Req 1 Req 2 Req 3A Req 3B Req 4 Req 5 What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit sales Break-even point in dollar sales units @ 12 2 M Req 1 Req 2 > < Prev 6 of 6 Next > M 31 с $ 64 #3 % 95 e r acer Oll 66 28 & o t y u 0 O 8 9 6 10
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