User Account

All Pages

What is the monthly break-even point in unit sales

Assignment Help Accounting Basics
Reference no: EM131563926

Problem - Menlo Company distributes a single product. The company's sales and expenses for last month follow:

Total

Per Unit

Sales

$632,000

$40

Variable expenses

442,400

28

Contribution margin

189,600

$12

Fixed expenses

151,200

Net operating income

$ 38,400

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 earn a target profit of $61,200? Use the formula method.

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 monthly sales increase by $84,000 and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?

Reference no: EM131563926

Questions Cloud

What was the highest office space rent : OFFICE RENTS After the economy softened, the sky-high office space rents of the late 1990s started to come down to earth. The function R gives the approximate.
Community to positively impact public health : Compare and contrast this with the steps you would take to foster the change process in your own community to positively impact public health.
The codes of ethics and legal mandates : Consider the client's needs, but also assess how providing treatment aligns with the guidelines proposed by the codes of ethics and legal mandates.
Triple constraints of it project management : First, review the 'triple constraints' of IT Project Management as covered in this week's reading "What is Project Management?"
What is the monthly break-even point in unit sales : Menlo Company distributes a single product. The company's sales and expenses for last month follow: What is the monthly break-even point in unit sales
According to capital asset pricing model : According to the capital asset pricing model, a fairly priced security will plot
The analysis of the psychometric properties : Locate a minimum of two appropriate scholarly and/or peer-reviewed sources to aid you in the analysis of the psychometric properties.
Identify what might be a personal or business : Identify what might be a personal or business asset (think of something you have at home that you would like to protect, or something.
Assisted drilling system for its oil exploration business : The Wildcat Oil Company is trying to decide whether to lease or buy a new computer-assisted drilling system for its oil exploration business.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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