Menlo Company distributes a single product. The company's sales and expenses for last month follow:SalesVariable expenses.Contribution marginFixed expensesNet operating income.Total$ 300,000210,00090,00074,400$ 15,600Required: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 $29,400?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 both dollar and percentage terms.5. What is the company's CM ratio? If the company can sell more units thereby increasing sales by $60,000 per month and there is nochange in fixed expenses, by how much would you expect monthly net operating income to increase?Req 1PerUnit$ 2014$6Complete this question by entering your answers in the tabs below.Req 2Req 3AReq 3BReq 4Req 5 Lindon Company is the exclusive distributor for an automotive product that sells for $54.00 per unit and has a CM ratio of 30%. Thecompany's fixed expenses are $388,800 per year. The company plans to sell 28,600 units this year.Required:1. What are the variable expenses per unit? (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 $226,800 per year?4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $5.40 per unit. What is thecompany's new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $226,800?1. Variable expense per unit2. Break-even point in units2. Break-even point in dollar sales3. Unit sales needed to attain target profit3. Dollar sales needed to attain target profit4. New break-even point in unit sales4. New break-even point in dollar sales4. Dollar sales needed to attain target profit

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (7,800 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 265,200 148, 200 117,000 55,700 $ 61,300 Required: (Consider each case independently): Per Unit $ 34.00 19.00 $15.00 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 2. What would be the revised net operating income per month if the sales volume decreases by 90 units? 3. What would be the revised net operating income per month if the sales volume is 6,800 units?
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Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 33.00 18.00 $ 15.00 Sales (8,800 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): Total $ 290,400 158,400 132,000 54,100 $ 77,900 1. What would be the revised net operating income per month if the sales volume increases by 40 units? 2. What would be the revised net operating income per month if the sales volume decreases by 40 units? 3. What would be the revised net operating income per month if the sales volume is 7,800 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
The following information relates to Oil Change Company. Oil Change Co. Projected Net Income For a Week Sales (160 cars serviced at $24 per car) Variable Expenses (160 cars at $9 per car) Contribution Margin Fixed Expenses Net Income Calculate the following: (i) Unit Contribution: (ii) Total Contribution: (iii) Break Even Point in Units (iv) Break Even Point in Dollars (v) Net Profit: $3,840 - 1,440 2,400 - 2,400 $ 0
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Data concerning Bon Corporation's single product appear below: Selling price per unit $ 180.00 Variable expense per unit $ 68.40 Fixed expense per month $ 130,200 The break-even in monthly dollar sales is closest to:
Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 33.00 19.00 $ 14.00 Sales (8,500 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 280,500 161,500 119,000 54,700 $ 64,300 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 70 units? 2. What would be the revised net operating income per month if the sales volume decreases by 70 units? 3. What would be the revised net operating income per month if the sales volume is 7,500 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
Gayne Corporation's contribution margin ratio is 19% and its fixed monthly expenses are $50,500. If the company's sales for a month are $312,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change. Multiple Choice $202,220 $8,780 $261,500 $59,280
Whirly Corporation's contribution format income statement for the most recent month is shown below: Total $ 268,600 150, 100 118,500 54,300 Per Unit $ 34.00 19.00 $ 15.00 $ 64,200 Sales (7,900 units) Variable expenses Contribution margin Fixed expenses Net operating income. Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 30 units? 2. What would be the revised net operating income per month if the sales volume decreases by 30 units? 3. What would be the revised net operating income per month if the sales volume is 6,900 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
Pringle Company distribute a single product. The company sales and expenses for the recent month are below; Total Cost Per Unit Total Sales Revenue $ 1,200,000 $ 40 Variable Expenses 840,000 28 Contribution Margin 360,000 12 Fixed Expenses 300,000 Net Operating Income 60,000 Required: What is the company’s break-even point in both units and sales dollars? Without restoring the computation, what is the total contribution margin at the breakeven point? How many units to be sold to earn the profit of S180, 000? Refer to data compute the company’s margin of safety and margin of safety in % of total sales? Compute the CM Ratio? If monthly sales increase by $ 80,000 what is increase in contribution margin, used contribution margin ratio.
Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (8,400 units) Variable expenses Contribution margin Total $ 260,400 159,600 Per Unit $ 31.00 19.00 $ 12.00 100,800 Fixed expenses Net operating income 55,300 $ 45,500 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 90 units?
Zanetti Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit$ 110.00 Variable expense per unit$ 34.10 Fixed expense per month$ 132, 066 The break - even in monthly unit sales is closest to: (Round your intermediate calculations to 2 decimal places.)

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