Q3 Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Contribution margin Fixed expenses Operating income Break-even point in unit sales Break-even point in sales dollars Required: 1. What is the monthly break-even point in unit sales and in dollar sales? (Do not round intermediate calculations.) Total contribution margin Total $486,000 194,400 291,600 233,280 $ 58,320 2. Without resorting to computations, what is the total contribution margin at the break-even point? units Per Unit $30 12 $18 3-a. How many units would have to be sold each month to earn a target profit of $97,200? Use the formula method. Units sold Menlo Company Contribution Income Statement Total units 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. Per unit
Q3 Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Contribution margin Fixed expenses Operating income Break-even point in unit sales Break-even point in sales dollars Required: 1. What is the monthly break-even point in unit sales and in dollar sales? (Do not round intermediate calculations.) Total contribution margin Total $486,000 194,400 291,600 233,280 $ 58,320 2. Without resorting to computations, what is the total contribution margin at the break-even point? units Per Unit $30 12 $18 3-a. How many units would have to be sold each month to earn a target profit of $97,200? Use the formula method. Units sold Menlo Company Contribution Income Statement Total units 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. Per unit
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...
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