Reference no: EM132986626
Question - Wesley Company manufactures and sells a single product. The company's income statement at sales level of 21,000 units for last quarter follows:
Total Sales $2,520,000
Less: Variable expenses 1,512,000
Contribution margin 1,008,000
Less: Fixed expenses 810,000
Net operating income $198,000
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.)
2. Without resorting to computations, calculate the total contribution margin at the break-even point for the quarter.
3-a. How many units would have to be sold each quarter to earn a target profit of $216,000? Use the formula method.
3-b. Verify your answer by preparing a contribution format income statement at the target level of sales.
4. Refer to the original data. Compute the company's margin of safety for the quarter in units, in dollars and as a percentage of last quarter's sales. (Round "Percentage" answer to 1 decimal place, (i.e., 0.123 should be considered as 12.3%).)
5. What is the company's CM ratio? If quarterly sales decrease by $100,800 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 compute your answer.)
|
Develop effective and well-structured interview
: Task A: Please develop and upload a well-structured interview that will enable you to gathering valuable data for your research. You should develop 9 to 12 ques
|
|
What is the key issue that scripps is dealing with
: What is the key issue that Scripps is dealing with? Give examples (real life or hypothetical) to illustrate how other organizations may have failed
|
|
Find the employee annual FICA taxes amount
: The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. Find the employee annual FICA taxes amount
|
|
Concepts of corporate social responsibility
: Distinguish between the concepts of corporate social responsibility, corporate social responsiveness, corporate social performance, and corporate citizenship.
|
|
Compute the company margin of safety for the quarter
: Refer to the original data. Compute the company's margin of safety for the quarter in units, in dollars and as a percentage of last quarter's sales
|
|
Differentiate use of descriptive and inferential statistics
: The developed and large companies benefit through employee loyalty. Drastic downsizing in organizations during the COVID 19 recession crushed loyalty of million
|
|
Model of consumer behaviour
: 1. The set of basic values, perceptions, wants and behaviours learned by an individual are classified as what factors?
|
|
What is the budgeted accounts receivable balance on May
: The accounts receivable balance on January 1 of the current year was $65,000, What is the budgeted accounts receivable balance on May
|
|
Calculate operating cash flow
: Given the following income statement data, calculate operating cash flow; net sales = $5,600, cost of goods sold = $2,650, operating expenses = $605
|