Do My Essay!

Do not waste time. Get a complete paper today.

Our leading custom writing service provides custom written papers in 80+ disciplines. Order essays, research papers, term papers, book reviews, assignments, dissertation, thesis or extensive dissertations & our expert ENL writers will easily prepare a paper according to your requirements.

Special offer! Get 20% discount on your first order. Promo code: SAVE20

E4-12   Menlo Company distributes a single product. The company’s sales and expenses for last month follow:

Total Per Unit

Sales \$1,092,000   \$70

Variable expenses 764,400   49

Contribution margin 327,600   \$21

Fixed expenses 264,600

Net operating income \$63,000

Requirement1:
What is the monthly break-even point in units sold and in sales dollars? (Omit the “\$” sign in your response.)

Requirement 2:

Without resorting to computations, what is the total contribution margin at the break-even point? (Omit the “\$” sign in your response.)

Requirement 3:

How many units would have to be sold each month to earn a target profit of \$96,600? Use the formula method.

Units sold  units

Requirement 4:

Refer to the original data. Compute the company’s margin of safety in both dollar and percentage terms. (Round your percentage value to 2 decimal places. Omit the “\$” and “%” signs in your response.)

Dollars Percentage Margin of safety \$  %

Requirement 5: What is the company’s CM ratio? If sales increase by \$91,000 and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?(Omit the “\$” and “%” signs in your response.)

CM ratio  %

Increased net operating income \$

Categories: Free Essay Questions