Question

Last month Watchworks Company had a $60,000 loss on sales of
$300,000. Fixed costs are $120,000 a month. Answer the following
questions:

a. What was the contribution margin percentage?

b. What monthly sales volume (in dollars) would be needed to
break-even?

c. What sales volume (in dollars) would be needed to earn
$150,000?

Answer #1

Eastland Corp. had total variable costs of $150,000, total fixed
costs of $120,000, and total revenues of $250,000.
(a1)
Your answer is correct.
Calculate contribution margin ratio.
Contribution margin ratio
%
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Attempts: 1 of 5 used
(a2)
Compute the required sales in dollars to break even.
Required sales
$

32.Marissa, Inc. has a contribution margin of 40% and fixed
costs of $200,000. What is the break-even point?
.
Last month Carol Company had a $30,000 profit on sales of
$250,000. Fixed costs are $60,000 a month. What sales revenue is
needed for Calico to break even?

Menlo Company distributes a single product. The company’s sales
and expenses for last month follow:
Total
Per Unit
Sales
$
316,000
$
20
Variable
expenses
221,200
14
Contribution
margin
94,800
$
6
Fixed
expenses
78,000
Net operating
income
$
16,800
Required:
1. 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
2. Without resorting to computations, what is the total
contribution margin at...

MENTO COMPANY distributes a single product. The company's sales
and expenses for last month follow: The company sales 15,000 units
last month.
Sales ....................... (15,000 units)
....................$ $450,000
Variable expenses
.............................................
180,000
Contribution margin
............................................. $ 270,000
Fixed expenses
................................................... 216,000
Net operating income ...........................................
. $ 54,000
REQUIRED
1. What is the monthly BREAK EVEN POINT in units and dollar
sales?
2. What is the Contribution Margin at the Break Even Point ?
3. How many units...

Menlo Company distributes a single product. The company’s sales
and expenses for last month follow:
Total
Per Unit
Sales
$
600,000
$
40
Variable expenses
420,000
28
Contribution margin
180,000
$
12
Fixed expenses
148,800
Net operating income
$
31,200
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...

Break-Even Point and Target Profit Measured in Sales
Dollars (Single Product). Nellie Company has monthly fixed
costs totaling $100,000 and variable costs of $20 per unit. Each
unit of product is sold for $25 (these data are the same as the
previous exercise):
Required:
Calculate the contribution margin ratio.
Find the break-even point in sales dollars.
What amount of sales dollars is required to earn a monthly
profit of $60,000?

Menlo Company distributes a single product. The company’s sales
and expenses for last month follow: Total Per Unit Sales $ 300,000
$ 20 Variable expenses 210,000 14 Contribution margin 90,000 $ 6
Fixed expenses 77,400 Net operating income $ 12,600 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...

Menlo Company distributes a single product. The company’s sales
and expenses for last month follow:
Total
Per Unit
Sales
$
302,000
$
20
Variable expenses
211,400
14
Contribution margin
90,600
$
6
Fixed expenses
73,200
Net operating income
$
17,400
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...

The following information is available for a company’s
maintenance cost over the last seven months.
Month
Maintenance Hours
Maintenance Cost
June
9
$
4,590
July
18
7,110
August
12
5,430
September
15
6,270
October
21
7,950
November
24
8,790
December
6
3,750
Using the high-low method, estimate both the fixed and variable
components of its maintenance cost.
High-Low method - Calculation of variable cost per maintenance
hour
0
Total cost at the high
point
Variable costs at the high
point:...

Menlo Company distributes a single product. The company’s sales
and expenses for last month follow:
Total
Per Unit
Sales
$
310,000
$
20
Variable expenses
217,000
14
Contribution margin
93,000
$
6
Fixed expenses
73,200
Net operating income
$
19,800
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...

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