Question

I need answer for only Req. 3A, 3B,5

Return to ques 6 Menio company distributes a single product ine companys sales and expenses for last month TolOW. 5 Total $636,000 445.200 190,800 148,800 $ 42,000 Per Unit $ 40 28 $ 12 Sales Variable expenses Contribution margin Fixed expenses Net operating income points 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 attain a target profit of $64,800? 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 the company can sell more units thereby increasing sales by $87,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Answer is not complete.

Answer 1

Montlly Breakeven point in unit and sales sold Sale No. of anot Selling Price 630000 40 15900 Breake even point in units fixed cost selling price porce- Variable cost por unit 128200 40-28 12400 / Break even point in sales Freed cost contribution margine Selling Price- Variablen Contribution margine : selling price 12/0 = 30% Break even sales 148800 4960o 30% breale even point -30% contribution morgine on sales & 30% - 636000X 3072 190800 g

3-a) Number of units to be sad to attain prant & 64800 combustion Prrato Sales G4800+144800 Salco or raro G480 0 +142800 307 Scleo 712000 in unito 712000 40 17800 3-b) Menio company ) Statement Contribution Income Total Pound 40 712000 Sches Counts: 19800) 498400 28 - Verrable cost 213600 12 conmibution (148800) Fixedlost 64800 pront

Total sale - Break even ot sately ba margine sales - 636000 - 446000 140000 Margine ne of safety in percentages = Sales 14oooo 6 36000 22.01 % contribution plo ralio = X100 sales stredost Total sales after increase = G30000 + 87000 72 3000 in units = 72 3003 18075 40 Variable costa 18075 X 28 = 506100 contributin (6723000-506100) Salles 723000 30%