If target sales in units is 70,000, total fixed expenses are $11,000, and the unit contribution...
If target sales in units is 70,000, total fixed expenses are $11,000, and the unit contribution margin is $0.20, what is the target operating income?
|
$14,000 |
||
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$25,000 |
||
|
$22 |
||
|
$3000 |
Homework Answers
Total contribution margin=(0.2*70,000)=$14,000
Less:Fixed expenses=($11,000)
Hence target operating income=$3,000
Add Answer to:
If target sales in units is 70,000, total fixed expenses are
$11,000, and the unit contribution...
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1.What is the contribution margin per unit? 2.What is the contribution margin ratio? 3.What is the...
1.What is the contribution margin per unit?
2.What is the contribution margin ratio?
3.What is the variable expense ratio?
4.If sales increase to 1,001 units, what would be the increase
in net operating income?
5.If sales decline to 900 units, what would be the net
operating income?
6.If the selling price increases by $2.50 per unit and the
sales volume decreases by 100 units, what would be the net
operating income?
7.If the variable cost per unit increases by $1.50,...
3-b. Verify your answer by preparing a contribution format income statement at the target sales level....
3-b. Verify your answer by preparing a contribution format income statement at the target sales level. Menlo Company Contribution Income Statement Total Per unit 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 (i.e.1234 should be entered as 12.34). Dollars Percentage Margin of safety 5. What is the company's CM ratio? If monthly sales increase by $98,000 and there is no change in...
Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
Menlo Company distributes a single product. The company’s sales
and expenses for last month follow:
Total
Per Unit
Sales
$
624,000
$
40
Variable expenses
436,800
28
Contribution margin
187,200
$
12
Fixed expenses
150,000
Net operating income
$
37,200
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 many units would have to be sold each...
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Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total...
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? [ Break-even point in unit sales Break-even point in sales dollars 12,600 units 504,000 $ 2. Without resorting to computations, what...
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Miller Company's most recent contribution format income statement is shown below: Sales (32.000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $224,000 128,000 96,000 47,000 $ 49,000 Per Unit $7.00 4.00 $3.00 Required: Prepare a new contribution format income statement under each of the following conditions (consider each case independently): (Do not round intermediate calculations. Round your "Per unit" answers to 2 decimal places.) 1. The number of units sold increases by 12%. Per Unit Miller Company...
1.What is the contribution margin per unit?
2.What is the contribution margin ratio?
3.What is the variable expense ratio?
4.If sales increase to 1,001 units, what would be the increase
in net operating income?
5.If sales decline to 900 units, what would be the net
operating income?
6.If the selling price increases by $2.50 per unit and the
sales volume decreases by 100 units, what would be the net
operating income?
7.If the variable cost per unit increases by $1.50,...
3-b. Verify your answer by preparing a contribution format income statement at the target sales level. Menlo Company Contribution Income Statement Total Per unit 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 (i.e.1234 should be entered as 12.34). Dollars Percentage Margin of safety 5. What is the company's CM ratio? If monthly sales increase by $98,000 and there is no change in...
Menlo Company distributes a single product. The company’s sales
and expenses for last month follow:
Total
Per Unit
Sales
$
624,000
$
40
Variable expenses
436,800
28
Contribution margin
187,200
$
12
Fixed expenses
150,000
Net operating income
$
37,200
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 many units would have to be sold each...
gnment Assume the following information: Per Unit $40 15 Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $300,000 112,500 187,500 53,000 $134,500 $25 The dollar sales to attain a target profit of $195,000 is: Multiple Choice $396.800 $329.500. signment The dollar sales to attain a target profit of $195,000 is: Multiple Choice $396,800. $329,500. $661.333. $434,500
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? [ Break-even point in unit sales Break-even point in sales dollars 12,600 units 504,000 $ 2. Without resorting to computations, what...
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