80.2K

Verified Solution

Link Copied!

provide answer 4

Menlo Company distributes a single product. The company's sales and expenses for last mooth foilow Required: 1. What is the monthly break-even point in unit sales and in dollar sales? (Do not round intermediote colculotions.) 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-0. How manv units would have to be sold each month to earn a taroet orofit of $106.200 ? Use the formula method 4. Refer to part 3 and now assume that the tax rate is 30 . How many units would need to be sold each month for an after-fax target profit of $106.200 ? (Round the final answer to the neorest whole number) Answer is complete but not entirely correct. 5. Refer to the original data Compute the company's margin of safety in both dollar and percentage terms (Round your percentage onswer to 2 decimel places.) 6. What is the company's CM ratio? If sales increase by $59.000 per month and there is no change in fixed expenses, by how much Would you expect monthly net operating income to increase? (Round your percentoge answer to 2 decimal places and other answer to the nearest whole dollor omount.) 3-a. How many units would have to be sold each month to earn a target profit of $106.200 ? Use the formula method Answer is complete and correct. 20.0600 units 3.b. Verify your answer by preparing a contribution format income statement at the target sales level

Answer & Explanation Solved by verified expert

See Answer