Exercise 5-18 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio [LO5-1, LO5-3, LO5-5, LO5-6, LO5-7] Menl

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Exercise 5-18 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio [LO5-1, LO5-3, LO5-5, LO5-6, LO5-7] Menl

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Exercise 5 18 Break Even And Target Profit Analysis Margin Of Safety Cm Ratio Lo5 1 Lo5 3 Lo5 5 Lo5 6 Lo5 7 Menl 1
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Exercise 5-18 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio [LO5-1, LO5-3, LO5-5, LO5-6, LO5-7] Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales $40 $ 624,000 436,800 28 Variable expenses Contribution margin. 187,200 $ 12 Fixed expenses 151,200 Net operating income i $ 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 month to attain a target profit of $58,800? 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 sales increase by $98,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Answer is not complete. Complete this question by entering your answers in the tabs below.
Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not im 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 $58,800? 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 sales increase by $98,000 per month and there is no change in fixed expenses, by how would you expect monthly net operating income to increase? Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 38 Req 4. Req 5 What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit sales. 12,600 units Break-even point in dollar sales 504,000 $ Reg 1 Req 2 >
Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate 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 $58,800? 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 sales increase by $98,000 per month and there is no change in fixed expenses, by how muca would you expect monthly net operating income to increase? Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Red 2 Req 3A Req 38 Req 4 Req 5 Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin $ 51,200 < Req 1 Req 3A >
Net operating income $ 16,000 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 month to attain a target profit of $58,800? 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 sales increase by $98,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Reg 3A Req 38 Req 4 Req 5 How many units would have to be sold each month to attain a target profit of $58,800? Units sales needed to attain target profit 17,500 < Req 2 Req 3B >
4. Keter to the original data. Compute the company's margin of safety in potn dollar and percentage terms. 5. What is the company's CM ratio? If sales increase by $98,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 38 Req 4 Req 5 Verify your answer by preparing a contribution format income statement at the target sales level. Menlo Company Contribution Income Statement Total Per Unit Sales Variable expenses Contribution margin Fixed expenses Net operating income Req 4 > 303 $ $ 40 28 12 0 0 < Req 3A 00
Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indica 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 sales increase by $98,000 per month and there is no change in fixed expenses, by how ma would you expect monthly net operating income to increase? Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Req Req 5 Reg 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. 0.1234 should be entered as 12.34).) Dollars Margin of safety Percentage 19.00 $ 120,000 < Req 3B Req 5 >
4. Keter to the original data. Compute the company's margin or sarety in potn dollar and percentage terms. 5. What is the company's CM ratio? If sales increase by $98,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 38 Req 4 Req 5 What is the company's CM ratio? If sales increase by $98,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? CM ratio 30 Net operating income increases by $ 17,640 < Req 4 Reg 5 >
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