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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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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