User Account

All Pages

What is the companys cm ratio if monthly sales increase by

Assignment Help Accounting Basics
Reference no: EM13568722

Exercise 5-11 Break-Even Analysis; Target Profit; Margin of Safety; CM Ratio [LO1, LO3, LO5, LO6, LO7]

Pringle Company distributes a single product. The company's sales and expenses for a recent month follow:

Total    Per Unit
  Sales $ 620,000
$ 40     
  Variable expenses
434,000

28     

  Contribution margin
186,000
$ 12     
  Fixed expenses
145,200



  Net operating income $   40,800





Required:
1. What is the monthly break-even point in units sold and in sales dollars?


  Break-even point in unit sales units
  Break-even point in sales dollars $           
2. Without resorting to computations, what is the total contribution margin at the break-even point?
  Total contribution margin $   
3. How many units would have to be sold each month to earn a target profit of $73,200? Use the formula method.
  Units sold   
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.)

      Dollars   Percentage   
  Margin of safety $    %
5.

What is the company's CM ratio? If monthly sales increase by $65,000 and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?


  CM ratio %
  Net operating income increases by $       

Reference no: EM13568722

Questions Cloud

What is the 99 one-day expected shortfall es of the : greg lawrence is a risk analyst at es bank. after estimating the 99 one-day var of the banks portfolio using historical
What is the standard deviation of a portfolios returns if : what is the standard deviation of a portfolios returns if the mearn returns are 15 the variance of retruns is 184 and
Research three to five 3-5 ethical issues relating to : you are a new associate at the law firm of dewey chetum and howe. john a former researcher at pharmacare comes to your
Extreme value theory evt provides valuable insight about : extreme value theory evt provides valuable insight about the tails of return distributions. which of the following
What is the companys cm ratio if monthly sales increase by : exercise 5-11 break-even analysis target profit margin of safety cm ratio lo1 lo3 lo5 lo6 lo7pringle company
Beau brentley earned 60000 from his job at bridgestone : 1 beau brentley earned 60000 from his job at bridgestone tires. he had 15 of his gross pay withheld for federal income
Which of the following statements regarding extreme value : which of the following statements regarding extreme value theory evt is incorrect?a. in contrast to conventional
Which of the following is most accurate with respect to : which of the following is most accurate with respect to delta-normal var?a. the delta-normal method provides accurate
What rate of return should a investor expect for a stock : what rate of return should a investor expect for a stock that has a beta of 0.8 when the market is expected to yield

Reviews

Write a Review

Accounting Basics Questions & Answers

  Indirect costs allocation to the consumer department

Management estimates that it costs $500 to analyze and close a commerical loan. This amount has been included in the $250,000 of inderict costs. How much of the $250,000 indirect costs should be allocated to the Consumer Department?

  How accounts receivables and cash go together

how accounts receivables and cash go together. Beyond just cash showing when funds are collected how is the timing of receivables different than the timing of cash and how can the company make sure they are on top of collecting the funds due them.

  Calculate the return on equity for abercrombie in 2012

1. Calculate the return on equity for Abercrombie in 2012. (Enter your answers in millions, not in dollars. Round your answers to 1 decimal place.)

  Joint costs according to the proportion of units

What is the amount of the joint costs allocable to A before the changes are made to the existing production process assuming the company allocates its joint costs according to the proportion of units produced?

  Verifying the accuracy of recorded dividend income

Jones was engaged to examine the financial statements of Gamma Corporation for the year ended June 30. Having completed an examination of the investment securities, which of the following is the best method of verifying the accuracy of recorded di..

  Design a calculator program that will add subtract multiply

design a calculator program that will add subtract multiply or divide two numbers input by a user. your program design

  Determining current annual net income

What might a manager do during the last quarter of a fiscal year if she wanted to improve current annual net income?

  Detmer holdings ag of zurich switzerland has just

detmer holdings ag of zurich switzerland has just introduced a new fashion watch for which the company is trying to

  A project that provides annual cash flows of 17100 for nine

a project that provides annual cash flows of 17100 for nine years costs 77000 today. what is the npv for the project if

  How much of the account inquiry costs and account billing

merriman company provides the following abc costing information activities total costs activity-cost drivers account

  Information about horizontal analysis

Comparative information taken from the Fogerty Company financial statements is shown below 2007 2006-Using horizontal analysis, show the percentage change from 2006 to 2007 with 2006 as the base year.

  Creating financial statements in excel

The following procedure is recommended when creating financial statements in Excel, in order to minimize error and make the statements easier to read when provided to others:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd