How many units would have to be sold each month to attain a target profit of 35,400 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$ 16,800Required: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 $35,400?3-b. Verify your answer by preparing a contribution format income statement at the target sales level.Req 1PerUnit$ 2014$64. 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?Req 2Complete this question by entering your answers in the tabs below.Req 3AReq 3BReq 4Req 5How many units would have to be sold each month to attain a target profit of $35,400?Units sales needed to attain target profit

The contribution margin per unit is calculated as difference between sales and variable costs per…

Answered: How many units would have to be sold…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A product has a daily demand 60 unitsOrdering cost RO 200, and holding cost RO 3 per unit per year. The EOQ model is appropriate. The cost-minimizing solution for this product will cost per year in total annual inventory (holding and ordering) costs. Assume there a total of 250 workdays per yearRound-up to the nearest integer
Blue Corp. shows monthly fixed costs of Php1,797 and per-unit cost of Php9.28. It sells 411 units in a month. What is the minimum price Blue Corp. must sell each unit for to break even?
Virgil Corp. has a selling price of $30 per unit, and variable costs of $20 per unit. When 12,000 units are sold, profits equaled $55,000. How many units must be sold to break-even?
You currently have a cash balance of $140,000, receivables of $220,000 and paybables of $90,000. Average days in receivables is 30 and average days in payables is 42. You typically order 50% of next quarters predicted sales in raw materials which is your variable cost. Salaries and other related costs typically amount to 20% of your current period sales. Last years sales were as detailed below by quarter. You expect an increase of 5% year on year on last years sales Q1 Q2 Q3 Q4 400,000 410,000 430,000 400,000
The company produced and sold 178,000 units forb$15 each last year. The company believes that the volume will increase by 30$ and the company plans to decrease price by 10% The new sales revenue will be?
Zara sells 15% of its fast fashion items at a 15% markdown. If the value of each item is $35 and the cost to make each item is $16, then what is the productivity ratio if Zara sells 1,500 units? (Enter your response rounded to two decimal places.)
Ashland Company manufactures and sells a single product. The company's sales and expenses for a recent month are as follows: (a) What is the monthly break-even point in units sold and in sales dollars?(b) How many units would have to be sold each month to earn a minimum target net income of $50,000?
XYZ Inc. needs 325 kgs of a material per month. It costs OMR 100 to make and receive an order, and it takes 16 workdays to receive it. The annual holding cost is 25 % of purchase price. The price OMR 2 per kg. The company is operating 6 days per week. What is the minimum annual total cost in OMR? Round-up to the nearest integer
Compute and report the 95% prediction interval for annual profit for a new restaurant in Kamloops with the following characteristics: 15,000 covers, $150k food cost, $85k overhead costs, and $100k labour cost.
Croy Inc. has the following projected sales for the next five months: Month Sales in Units April 3,540 May 3,865 June 4,540 July 4,155 August 3,920 Croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. Direct material costs $2.80 per pound, and each unit requires 2 pounds. Raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. Raw materials on hand at March 31 totaled 3,735 pounds. Required:1. Determine budgeted production for April, May, and June. (Do not round your intermediate calculations and round your final answer to the nearest whole number.) 2. Determine the budgeted cost of materials purchased for April, May, and June. (Use rounded Budgeted Production units in intermediate calculations. Round your answers to 2 decimal places.)
I need help with this question
Herro, Inc. sells Product TH14 for $57.00 per unit. Variable costs for Product TH14 are $41.00 per unit, and monthly fixed costs are $467,000. If Herro desires a monthly net income of $14,000, how many units of Product TH 14 must be sold per month?

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS