70.2K

Verified Solution

Link Copied!

Menlo Company distributes a single product. The company's sales and exporses for last month follow: Total Per Unit Sales 3486,000 538 Variable expenses 194,400 12 Contribution margin 291,600 $18 Fixed expenses 233,280 Operating income $ 58,320 Required: 1. What is the monthly break-even point in unit sales and in dolar solos? (Do not round Intermediate calculations.) units Break-even point in unt sales Book even pointes dollar 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 com a target profit of $97,2007 Use the formula method 3. How many units would have to be sold each month to earn a target profit of $92.2007 Use the formula method Und 3-b. Verify your answer by preparing a contribution format income statement at the target sales level Manis Coin incelent Tutal Peruut 4. Refer to per and now assume that the tax rate is 30. How many units would need to be sold each month for an after tax target profit of $97.2007 Round the final answer to the whole number) 4. Refor to part 3 and now assume that the tax rate is 20% How many units would need to be sold each month for an after tax target profit of $97,2007 (Round the final answer to the nearest whole number) ure 5. Refer to the originaldate. Compute the company's margin of safety in both dollar and percentage terms (ound your percentage answer to 2 decimal places.) Dollars Perang 6. What is the company's CM ratio? if sales increase by 554,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? (Round your percentage answer to 2 decimal places and other answer to the nearest whole dollar amount.) Monyeting come on by

Answer & Explanation Solved by verified expert

See Answer