Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Contribution margin Fixed expenses Operating income Total $495,000 198,000 Break-even point in unit sales Break-even point in sales dollars 297,000 237,600 $ 59,400 Per Unit 12 $ 18 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? (Do not round Intermediate calculatio units 2. Without resorting to computations, what is the total contribution margin at the break-even point?
Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Contribution margin Fixed expenses Operating income Total $495,000 198,000 Break-even point in unit sales Break-even point in sales dollars 297,000 237,600 $ 59,400 Per Unit 12 $ 18 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? (Do not round Intermediate calculatio units 2. Without resorting to computations, what is the total contribution margin at the break-even point?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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