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Managerial Accounting: Chapter 6 Cost-Volume-Profit Relationships Menlo Company distributes a single product....

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Accounting

Managerial Accounting: Chapter 6 Cost-Volume-Profit Relationships image
Menlo Company distributes a single product. The company's sales and expenses for last month follow. Per Unit $20 14 Total $ 310,000 217.000 93,000 72,000 $ 21,000 $ Sales Variable expenses Contribution margin Fixed expenses Net operating income 6 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 $31,800? 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 $83,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Reg 38 Reg 4 Reg 5 What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit sales Break even point in dollar sales Reg 2 >

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