Q3Menlo Company distributes a single product. The company's sales and expenses for last month follow:Total$486,000Per Unit$3012194,400SalesVariable expensesContribution marginFixed expensesOperating incomeRequired:1. What is the monthly break-even point in unit sales and in dollar sales? (Do not round intermediate calculations.)Break-even point in unit salesBreak-even point in sales dollarsTotal contribution margin2. Without resorting to computations, what is the total contribution margin at the break-even point?Units sold3-a. How many units would have to be sold each month to earn a target profit of $97,200? Use the formula method.291,600 $18233,280$ 58,320unitsMenlo CompanyContribution Income Statement.Total3-b. Verify your answer by preparing a contribution format income statement at the target sales level.Unit sales requiredunitsunitsPer unit4. Refer to part 3 and now assume that the tax rate is 30%. How many units would need to be sold each month for an after-tax targetprofit of $97,200? (Round the final answer to the nearest whole number.)5. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. (Round your percentageanswer to 2 decimal places.)Margin of safetyDollarsPercentageCM ratioMonthly operating income increases by%6. What is the company's CM ratio? If sales increase by $54,000 per month and there is no change in fixed expenses, by how muchwould you expect monthly net operating income to increase? (Round your percentage answer to 2 decimal places and other answerto the nearest whole dollar amount.)

Cost volume profit analysis is the technique used by management for decision-making. The methods…

Answered: Q3 Menlo 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...

See similar textbooks

Similar questions

Data concerning Strite Corporation's single product appear below: Selling price per unit Variable expense per unit Fixed expense per month Assume the company's target profit is $8,000. The dollar sales to attain that target profit is closest to: (Round your intermediate calculations to 2 decimal places.) Multiple Choice $1,532,857 $429,200 $596,111 $ 150.00 $ 42.00 $ 421,200 $852,723
Smithen Company, a wholesale distributor, has been operating for only a few months. The company sells three products-sinks, mirrors, and vanities. Budgeted sales by product and in total for the coming month are shown below based on planned unit sales as follows: Sinks Mirrors Vanities Total Units 1,000 500 500 2,000 Percentage of total sales Sales Variable expenses Contribution margin Contribution margin per unit Fixed expenses Operating income Break-even point in unit sales: Percentage sex 25% 25% 100% Break-even point in sales dollars: Total Fixed expenses. Weighted-average CM per unit Sinks 48% Product Mirrors 20% $264,000 100.00% $110,000 100.00% $176,000 100.00% $550,000 100.00% 80,000 30.30% 72,000 65.45% 82,000 46.59% 219,300 39.87% 53.41% 60.13% $184,000 $ 94,000 330,700 69.70% 38,000 34.55% S 76.00 $ 184.00 $ 188.00 Fixed expenses Overall CM ratio $293,300 $158.00 Vanities 32% $293,300 0.60 1,856.33 units Total 100% 293,300 $ 37,400 = $487,798.61 *($184.00 0.50) + ($76.00 x…
what is the dollar sales to attain that target profit is closest to Data concerning Strite Corporation's single product appear below: Selling price per unit Variable expense per unit Fixed expense per month $ 150.00 $ 42.00 $421,200 He Assume the company's target profit is $8,000. The dollar sales to attain that target profit is closest to: (Round your i calculations to 2 decimal places.)
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…
Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit Variable expense per unit Fixed expense per month $ 190.00 $ 94.50 $ 438,790 The unit sales to attain the company's monthly target profit of $25,000 is closest to: (Do not round intermediate calculations.)
Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit $ 200.00 Variable expenses per unit $ 95.50 Fixed expense per month $ 441,890The unit sales to attain the company's monthly target profit of $27,000 is closest to: (Do not round intermediate calculations.) 4487 4910 2344 4229
Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit Variable expense per unit Fixed expense per month The unit sales to attain the company's monthly target profit of $25,000 is closest to: (Do not round intermediate calculations.) Multiple Choice O 4,595 2,441 4,908 4,856 $190.00 $ 94.50 $ 438,790
A U Ltd manufactures and sells a single product, the company's sales and expenses for themonth of January 2021 were as follows:Total (Kshs)Value per unit (Kshs)Sales1.200.0080.00Less: Variable expenses840.0056.00Contribution360.0024.00Less: Fixed expenses300.00Net income60.00Required:What is the monthly breakeven point in units and in shillings?What is the total contribution margin at breakeven point?How many units would be sold each month to carn a minimum target net income ofkshs. 36.000?(iv)Using the original data, compute a company's margin of safety in both shilling and in percentage termsWhat is the contribution margin ratio, if the monthly sales increase by Kshs 16,000?
The Abigail Company produces and sell two products, X and Y. Cost and revenue data on the products follow: Product X Product Y P24 Selling price per unit Variable cost per unit Contribution margin per unit P20 12 6. P8 P18 In the most recent month, the company sold 400 units of Product X and 800 units of Product Y. Fixed expenses are P10,000 per month. REQUIRED: 1. Prepare a comparative income statement for both products on the most recent monthly projections. 2. Compute the company's overall monthly break-even point in peso sales.
Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $31.00 18.00 $ 13.00 Sales (8,600 units) Variable expenses Contribution, margin Fixed expenses Net operating income Total $ 266,600 154,800 111,800 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 56,000 $ 55,800 1. What would be the revised net operating income per month if the sales volume increases by 90 units? 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.7,600 units?
A company has provided the following details for a month: Estimated Sales Units 16,500 Variable Selling and Administrative Expense per Unit $4.00 Fixed Selling and Administrative Expenses $95,000 Depreciation Expense included in Fixed Selling and Administrative Expense $27,000 How much is expected cash disbursements for selling and administrative expenses?
Сорy of Comparative income statements for Your Company for two months are presented below: September October Sales in units 11,000 10,000 Operating Expenses: Expense 1 $55,800 $50,800 Expense 2 13,200 12,000 Expense 3 22,000 20,000 Expense 4 10,000 $101,500 $92,800 10,500 Total Operating Expenses Expense 3 is a O A. Variable cost O B. Mixed cost O C. Fixed cost

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS