None Menlo Company distributes a single product. The company's sales and expenses for last month follow: TotalPer Unit Sales $ 632, 000 $ 40 Variable expenses 442, 400 28 Contribution margin 189,600 $ 12 Fixedexpenses 151, 200 Net operating income $ 38, 400 1. What is the monthly break - even point in unit salesand 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 $55,200? 3-b. Verify your answer by preparing a contribution format income statement at the target saleslevel. 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 $96,000per month, and there is no change in fixed expenses, by how much would you expect monthly net operatingincome to increase?

The break-even point refers to a point where there is no profit or loss. At this point therefore the…

Answered: nio Company distributes a single…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...

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Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?
Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.
Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What is the cost formula for monthly shipping cost? Identify the independent variable, the dependent variable, the fixed cost per month, and the variable rate.
Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200
Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of November when they will sell 130 units. How many units will Marlin need to sell in order to realize a target profit of $48,000? What dollar sales will Marlin need to generate in order to realize a target profit of $48.000? Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.
If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.
Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses. Contribution margin Fixed expenses Net operating income Total $ 624,000 436,800 187,200 146,400 $ 40,800 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? Req 1 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 $61,200? Req 2 Per Unit 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 $64,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? $ 40 28 $ 12 Complete this…
Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit $ 640,e00 Sales variable expenses $ 40 448, e00 28 Contribution margin 192,e00 $ 12 Fixed expenses 154,800 Net operating income 37, 200 Requlred: 1. What Is the monthly break-even polnt In unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3. How many units would have to be sold each month to attaln a target profit of $61,200? 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 ratlo? If the company can sell more units thereby Increasing sales by $65,000 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. Req 2 Reg 3 Req 1 Req 4 Req 5 What is the monthly break-even point in…
Company ABC distributes a single product. The company’s sales and expenses for last month follow: Total Per Unit Sales $90,000 $30 Variable expenses $36,000 $12 Contribution margin $54,000 $18 Fixed expenses $16,000 Net operating income $38,000 What is the monthly break-even point in unit sales and in dollar sales? (2 marks) Without resorting to computations, what is the total contribution margin at the break-even point? (2 marks) How many units would have to be sold each month to earn a target profit of $11,000? Use the formula method. Verify your answer by preparing a contribution format income statement at the target sales level. (2 marks) Refer to the original data. Compute the company’s margin of safety in both dollar and percentage terms. (2 marks) What is the company’s CM ratio? If sales increase by $10,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income…

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