Wesley Company Manufactures And Sells A Single Product The Company S Income Statement At Sales Level Of 31 500 Units Fo 1 (29.1 KiB) Viewed 43 times
Wesley Company manufactures and sells a single product. The company's Income statement at sales level of 31,500 units for last quarter follows: Sales Less: Variable expenses Contribution margin Less: Fixed expenses Net operating inconte Total $1,260,eee 882,600 378,eee 3e7,692 $ 70,38 Required: 1. What is the monthly break-even point in units sold and in sales dollars? (Round your intermediate calculations and final answers to the nearest whole number.) Break-even Point Break-even point in units sold Break-even in sales dollars 2 Without resorting to computations, calculate the total contribution margin at the break-even point for the quarter. Total contribution margin 3-a. How many units would have to be sold each quarter to earn a target profit of $25.2002 Use the formula method. Units sold to attain target profit 3-b. Verify your answer by preparing a contribution format Income statement at the target level of sales. Total Unit Sales 332.892
4. Refer to the original data. Compute the company's margin of safety for the quarter In units, in dollars and as a percentage last quarter's sales. (Round "Percentage" answer to 1 decimal place.(i.e., 0.123 should be considered as 12.3%).) Units Dollars Percentage Margin of safety 5. What is the company's CM ratio? If quarterly sales decrease by $97.600 and there is no change in fixed expenses, what would you expect the quarter's net operating income to be? (Do not prepare an Income statement use the CM ratio to comp your answer.) % CM ratio Net operating income
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