Question

Sales (10,000 units)

S1,500,000

Less: variable expenses

900,000

Contribution margin

600,000

Less: fixed expenses

400,000

Operating income

$200,000

1-What is the company's contribution margin ratio? *

2-What is the company's break-even in dollar? *

3-If sales increase by 100 units, by how much should operating
income increase? *

4-How many units would the company have to sell to attain
target operating income of $230,000? *

5-What is the company's margin of safety in dollars? *

Answer #1

Sales
$60,000
Less: Variable Expenses
45,000
Contribution Margin
15,000
Less: Fixed Expenses
18,000
Net Income
-$3,000
a. What are the total sales in dollars at the break-even
point?
b. What are the total variable expenses at the break-even
point?
c. What is the company's contribution margin ratio?
d. If unit sales were increased by 10% and fixed expenses were
reduced by $2,000, what would be the company's expected net income?
(Prepare a new income statement.)

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...

Drake Company's income statement for the most recent year
appears below. Sales (45,000 units) $1,350,000 Less: variable
expenses 750,000 Contribution margin 600,000 Less: fixed expenses
375,000 Net operating income $225,000 REQUIRED: a. Calculate the
unit contribution margin in dollars. b. Calculate the break-even
point in dollars. c. If the company desires a net operating income
of $290,000, how many units must it sell?

The following is TJLS Corporation's contribution format income
statement for last month:
Sales $1,200,000
Less: Variable Expenses: $800,000
Contribution Margin: $400,000
Less: Fixed Expenses: $300,000
Operating Income: $100,000
5. What is the company's margin of safety in dollars?
6. What is the company's degree of operating leverage? Explain
how a company could use this number in terms a non-accountant could
understand.
7. If the tax rate is 30%, how many units must be sold to attain
an after-tax profit of...

XYZ company's sales $800000, unit variable cost $8, fixed
expense $100000, and number of units sold equals 80000.
Requirements (1-10):
Net operating income.
2. Contribution margin percentage.
3. Unit fixed cost.
4. Break-even point in unit sold.
5. Break-even point in total sales dollar.
6. Unit sales to attain the target profit 76000.
7. Margin of safety (Units).
8. Margin of safety (%).
9. Degree of operating leverage.
10.In original information, if the number of quantity sold
increase by 10%,...

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...

SIMPLE manufactures and sells a single product. The company’s
sales and expenses for last quarter follow: Total Per Unit Sales
$600,000 $40 Less: Variable Expenses $420,000 $28 Contribution
Margin $180,000 $12 Less: Fixed Expenses $146,520 Net Operating
Income $33,480 Required: What is the monthly break-even point in
units sold and in sales dollars? Without resorting to computations,
calculate the total contribution margin at the break-even point.
How many units would have to be sold each quarter to earn a target...

(TCO C) Magnolia Company's income statement for the most recent
year appears below.
Sales (45,000 units)
$1,350,000
Less: variable expenses
750,000
Contribution margin
600,000
Less: fixed expenses
375,000
Net operating income
$225,000
Required:
Calculate the unit contribution margin.
Calculate the the break-even point in dollars.
If the company desires a net operating income of $290,000, how many
units must it sell?

QUESTION 2
SPI-K manufactures and sells a single product. The company’s
sales and expenses for last quarter follow:
Total
Per Unit
Sales
$600,000
$40
Less: Variable Expenses
$420,000
$28
Contribution Margin
$180,000
$12
Less: Fixed Expenses
$146,520
Net Operating Income
$33,480
Required:
What is the monthly break-even point in units sold and in sales
dollars?
Without resorting to computations, calculate the total
contribution margin at the break-even point.
How many units would have to be sold each quarter to earn...

Break-Even Units, Contribution Margin Ratio, Multiple-Product
Breakeven, Margin of Safety, Degree of Operating Leverage
Jellico Inc.'s projected operating income (based on sales of
450,000 units) for the coming year is as follows:
Total
Sales
$11,700,000
Total variable cost
8,190,000
Contribution margin
$3,510,000
Total fixed cost
2,254,200
Operating income
$1,255,800
Required:
1(a). Compute variable cost per unit. Round
your answer to the nearest cent.
$per unit
1(b). Compute contribution margin per unit.
Round your answer to the nearest cent.
$per unit...

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