Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Break even point exercises and answers

26/10/2021 Client: muhammad11 Deadline: 2 Day

Exercise 4-12 Target Profit And Break-Even Analysis; Margin Of Safety CM [LO1, LO3, LO5, LO6, LO7] Ratio_Answer

Exercise 4-12 Target Profit and Break-Even Analysis; Margin of Safety; CM Ratio [LO1, LO3, LO5, LO6, LO7]
Exercise 4-12 Target Profit and Break-Even Analysis; Margin of Safety; CM Ratio [LO1, LO3, LO5, LO6, LO7]

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
________________________________________

Requirement 1:
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 $

Problem 4-31 Changes in Fixed and Variable Costs; Target Profit and Break-Even Analysis [LO4, LO5, LO6]

Neptune Company produces toys and other items for use in beach and resort areas. A small, inflatable toy has come onto the market that the company is anxious to produce and sell. The new toy will sell for $2.9 per unit. Enough capacity exists in the company's plant to produce 30,900 units of the toy each month. Variable costs to manufacture and sell one unit would be $1.84, and fixed costs associated with the toy would total $48,631 per month.

The company's Marketing Department predicts that demand for the new toy will exceed the 30,900 units that the company is able to produce. Additional manufacturing space can be rented from another company at a fixed cost of $2,432 per month. Variable costs in the rented facility would total $2.03 per unit, due to somewhat less efficient operations than in the main plant.

Requirement 1:

(a) Calculate the contribution margin per unit on anything over 30,900 units. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Contribution margin $


(b) Compute the total fixed costs to be covered if more than 30,900 units are produced. (Omit the "$" sign in your response)

Total fixed costs to be covered by remaining sales $


(c) Compute the monthly break-even point for the new toy in units and in total sales dollars. (Round your answers to the nearest whole number. Omit the "$" sign in your response.)


Monthly break-even point in unit sales units

Monthly break-even point in dollar sales $

________________________________________

Requirement 2:
How many units must be sold each month to make a monthly profit of $10,962?

Units to be sold units


Requirement 3:
If the sales manager receives a bonus of 20 cents for each unit sold in excess of the break-even point, how many units must be sold each month to earn a return of 21% on the monthly investment in fixed costs? (Round your answer to the nearest whole number.)

Total units to be sold units

Problem 6-15 Comprehensive Problem with Labor Fixed [LO1, LO2, LO3, LO4]
[The following information applies to the questions displayed below.]
Far North Telecom, Ltd., of Ontario, has organized a new division to manufacture and sell specialty cellular telephones. The division's monthly costs are shown below:


Manufacturing costs:
Variable costs per unit:
Direct materials $88
Variable manufacturing overhead $3
Fixed manufacturing overhead costs (total) $220,400
Selling and administrative costs:
Variable 12% of sales
Fixed (total) $163,000
________________________________________

Far North Telecom regards all of its workers as full-time employees and the company has a long-standing no layoff policy. Furthermore, production is highly automated. Accordingly, the company includes its labor costs in its fixed manufacturing overhead. The cellular phones sell for $330 each. During September, the first month of operations, the following activity was recorded:


Units produced 3,800
Units sold 3,000
________________________________________

rev: 02-09-2011
references
Section Break Problem 6-15 Comprehensive Problem with Labor Fixed [LO1, LO2, LO3, LO4]

1.
value:
20.00 points


Problem 6-15 Requirement 1

Requirement 1:
(a) Compute the unit product cost under Absorption costing. (Omit the "$" sign in your response.)

Unit product cost $


(b) Compute the unit product cost under Variable costing. (Omit the "$" sign in your response.)

Unit product cost $

2.
value:
20.00 points


Problem 6-15 Requirement 2

Requirement 2:
Prepare an absorption costing income statement for September.(Input all amounts as positive values. Omit the "$" sign in your response.)

Requirement 3:
Prepare a contribution format income statement for September using variable costing. (Input all amounts as positive values except net operating loss which should be indicated by a minus sign. Omit the "$" sign in your response.)

Requirement 4:
Assume that the company must obtain additional financing in order to continue operations. As a member of top management, would you prefer to rely on the statement in (2) above or in (3) above when meeting with a group of prospective investors?

rev: 02-09-2011

Absorption costing statement

Variable costing statement
Requirement 5:
Reconcile the absorption costing and variable costing net operating incomes in requirement 2 and 3 above. (Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.)


$ : Fixed manufacturing overhead cost deferred

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Write My Coursework
Essay Writing Help
Fatimah Syeda
Quick Mentor
Finance Professor
Finance Homework Help
Writer Writer Name Offer Chat
Write My Coursework

ONLINE

Write My Coursework

I have done dissertations, thesis, reports related to these topics, and I cover all the CHAPTERS accordingly and provide proper updates on the project.

$18 Chat With Writer
Essay Writing Help

ONLINE

Essay Writing Help

This project is my strength and I can fulfill your requirements properly within your given deadline. I always give plagiarism-free work to my clients at very competitive prices.

$30 Chat With Writer
Fatimah Syeda

ONLINE

Fatimah Syeda

I am a professional and experienced writer and I have written research reports, proposals, essays, thesis and dissertations on a variety of topics.

$16 Chat With Writer
Quick Mentor

ONLINE

Quick Mentor

I have written research reports, assignments, thesis, research proposals, and dissertations for different level students and on different subjects.

$34 Chat With Writer
Finance Professor

ONLINE

Finance Professor

I have done dissertations, thesis, reports related to these topics, and I cover all the CHAPTERS accordingly and provide proper updates on the project.

$50 Chat With Writer
Finance Homework Help

ONLINE

Finance Homework Help

I can assist you in plagiarism free writing as I have already done several related projects of writing. I have a master qualification with 5 years’ experience in; Essay Writing, Case Study Writing, Report Writing.

$22 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Quaid e awam public school larkana - Edi reference guide - T4 10w 3400k screwfix - Charisma matrix tonality checklist - Sheffield city council job vacancies - Patient-Centric Health Care Practices - How will you distinguish borneol and isoborneol by nmr - Chris rodgers conveyancing strathalbyn - 7 2 final project submission statistical analysis report - Papa john's competitive strategy - Blackboard strayer edu - Linked and convergent premises - Emotion coaching handout for parents - Malawi versus the world bank - Bsc final year project - Final Assignment - Introduction to sociology strayer university - Inductance of a wire loop - Class diagram for dental clinic management system - The tensile strength of a certain metal component - Commercial food equipment service association cfesa - Period of physical pendulum - Bus.com 4.2 - Fast food nation epilogue summary - Most informational reports are written - Determination of the copper content in a brass sample - Communication role play scripts - How many people per square mile in the world - Break break break poem analysis - Software development process - Fleur de sel woolworths - The spook who sat by the door sparknotes - How does the cell membrane maintain stable internal conditions - Chinese reading - Example of a character description - Dj nino brown blazin 2002 - Midshires College of Midwifery and Nursing - Griffith university admission requirements - 2015 trial exam papers - Adjusted cash balance per bank - Home depot in china case study - 3930 sunforest court toledo ohio - Diss6 - Course Project Milestone for topic- Immigration 4-5 pages - Information Systems Architecture - Similarities between egypt and philippines culture - A rose for emily quiz - Computer science homework help - Wgu evidence based practice task 1 2018 - Publicly funded early childhood programs - 96.4 kg in stone - Health insurance matrix hcs 235 - Strayer university acc 100 syllabus - Psychology/discussion - Dq4 - Bed pole risk assessment - Alitalia 404 voice recorder - Best ring flash for dental photography - How to make xmr chart in excel - Psychology test - Mg hcl mgcl2 h2 balanced - The hoist supports the kg engine - Fep executive search jessica hogan - Beverly hills md resurface restore youth revealing system - Teesside university student email login - Before you know it john bargh pdf - Unit IV Case Study(For Dr.Ellen RM) - Jb hi fi tax invoice - Best topics to talk about in a speech - 4 year old child observation report - Human resource - Charles baudelaire and ts eliot - Biology essay - What insight does roi give into investment performance - St modans high school website - Salomon v salomon [1897] - Bay leather republic armchair - Musical fountain in china with audio of bhagavad gita - C- Diversity - Homework and journal - Question & Answer - Simnet excel project 6 6 - Principles of management midterm exam - Week 4 assignment 1 - Camperdown wildlife park jobs - Remington 1100 carrier release - Elevate Your Travel Experience with Luxury Transportation - Physics - Kahoot it login create - Risk Management Plan - 300 words - A small g plastic ball is suspended - What subjective factors would affect the investment decision - Cus discussion week 6 - Country code with 85 - Bangladesh high commission canberra passport - Kroger 5s of key retailing - Www ncsbn org 1225 htm - More zero product law work homework answer key - Calculus a complete course answers - Dissertation Literature Outline