Question
In: Accounting
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total Per Unit Sales $ 624,000 $ 40 Variable expenses 436,800 28 Contribution margin 187,200 $ 12 Fixed expenses 147,600 Net operating income $ 39,600 Required:
1. What is the monthly break-even point in unit sales and in dollar sales also 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 $58,800?
4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. (Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34).)
5. What is the company’s CM ratio? If sales increase by $61,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales
and expenses for last month follow:
Total
Per Unit
Sales
$
302,000
$
20
Variable expenses
211,400
14
Contribution margin
90,600
$
6
Fixed expenses
77,400
Net operating income
$
13,200
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...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales
and expenses for last month follow: Total Per Unit Sales $ 620,000
$ 40 Variable expenses 434,000 28 Contribution margin 186,000 $ 12
Fixed expenses 148,800 Net operating income $ 37,200
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...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales
and expenses for last month follow:
Total
Per Unit
Sales
$
612,000
$
40
Variable expenses
428,400
28
Contribution margin
183,600
$
12
Fixed expenses
147,600
Net operating income
$
36,000
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...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales
and expenses for last month follow: Total Per Unit Sales $ 624,000
$ 40 Variable expenses 436,800 28 Contribution margin 187,200 $ 12
Fixed expenses 154,800 Net operating income $ 32,400 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...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales
and expenses for last month follow:
Total
Per Unit
Sales
$
306,000
$
20
Variable expenses
214,200
14
Contribution margin
91,800
$
6
Fixed expenses
76,200
Net operating income
$
15,600
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...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales
and expenses for last month follow:
Total
Per Unit
Sales
$
608,000
$
40
Variable expenses
425,600
28
Contribution margin
182,400
$
12
Fixed expenses
151,200
Net operating income
$
31,200
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...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales
and expenses for last month
follow:
Total Per Unit
Sales. . . . . . . . . . . . . . . . . . . . . . . . $450,000
$30
Variable expenses . . . . . . . . . . . . . 180,000 12
Contribution margin . . . . . . . . . . . . 270,000 $18
Fixed expenses. ....
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales
and expenses for last month follow:
Total
Per Unit
Sales
$
304,000
$
20
Variable expenses
212,800
14
Contribution margin
91,200
$
6
Fixed expenses
73,200
Net operating income
$
18,000
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...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales
and expenses for last month follow:
Total
Per Unit
Sales
$
450,000
$
30
Variable expenses
180,000
12
Contribution margin
270,000
$
18
Fixed expenses
216,000
Net operating income
$
54,000
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...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company
distributes a single product. The company’s sales and expenses for
last month follow:
Total
Per Unit
Sales
$
616,000
$
40
Variable
expenses
431,200
28
Contribution
margin
184,800
$
12
Fixed
expenses
147,600
Net operating
income
$
37,200
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...
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