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

Without resorting to computations, what is the total contribution margin at the break-even point?

21/11/2020 Client: papadok01 Deadline: 12 Hours

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:

Buy Coursework Help
Quality Homework Helper
University Coursework Help
Homework Guru
Top Essay Tutor
Best Coursework Help
Writer Writer Name Offer Chat
Buy Coursework Help

ONLINE

Buy Coursework Help

Hi dear, I am ready to do your homework in a reasonable price.

$62 Chat With Writer
Quality Homework Helper

ONLINE

Quality Homework Helper

Hi dear, I am ready to do your homework in a reasonable price.

$62 Chat With Writer
University Coursework Help

ONLINE

University Coursework Help

Hi dear, I am ready to do your homework in a reasonable price.

$62 Chat With Writer
Homework Guru

ONLINE

Homework Guru

Hi dear, I am ready to do your homework in a reasonable price and in a timely manner.

$62 Chat With Writer
Top Essay Tutor

ONLINE

Top Essay Tutor

I have more than 12 years of experience in managing online classes, exams, and quizzes on different websites like; Connect, McGraw-Hill, and Blackboard. I always provide a guarantee to my clients for their grades.

$65 Chat With Writer
Best Coursework Help

ONLINE

Best Coursework Help

I am an Academic writer with 10 years of experience. As an Academic writer, my aim is to generate unique content without Plagiarism as per the client’s requirements.

$60 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

I need 300 words in environmental pollution - Swlb - Genigraphics research poster template - How did ted lavender die in the things they carried - 1331 crissey circle brookings or - Mater christi mass times - What are design constraints - Swimming teacher job description - Every society faces economic trade-offs. this means - Isolation of pure culture by streak plate method - If a company’s beta were to double, would its expected return double? - Facebook port fairy community notice board - How an essay should look - Jack welch transformational leadership style - What are the basic objectives of psychological first aid - Starchild gsfc nasa gov docs starchild solar system level 1 - Asme definition of pressure vessel - Beer and johnston mechanics of materials - 1876 glenelg highway wannon - Mark hemans prayer request - Critical claim - Multiples of 3 to 1000 - How to find the sum of squared deviations - Barber shop market analysis - Professional real estate development the uli guide to the business - Molar mass of alka seltzer - Similarities between egypt and philippines culture - Paper 1 - What is the fifth month of the year - Tri-component model of attitudes - Ebonite optyx skull bowling ball - Doris is coming zz packer - Which consumer market segments best match with benihana - Avaya g430 default password - Picture perfect ella fox epub - Week-15 - Hope by lisel mueller analysis - Completa cada oración con la palabra correcta de la lista. haz los cambios necesarios. - Sport obermeyer case study answers - Infant feeding guidelines for health workers - Thermal expansion lab report - Identify a social, environmental, or political problem that is of local, national, or global concern. - Bunning v cross 1978 - Five pillars of islam compared to the ten commandments - Robert palmer she makes my day chords - Speare hospital patient portal - Shyam selvadurai and andrew champion - Writing Assignment 3 - Education as a social sub system - Organizational behavior case study motivation - Eylf learning outcome 2 - Excel Project - Human Resources research paper: Work place stress and effects on employees - Four stages of appreciative inquiry - How to become a consultant biomedical scientist - A firm has a total debt ratio of 47 - Macedon ranges walking trail - Engineering - Leadership - Scarcity occurs because of eco 365 - Office manager job description - Soap Note Gastroesophageal Reflux - Enzyme amylase action on starch answers - How to cite authorless website apa - Amazon industry average current ratio - Curriculum and Motivation - Mvr nt rego renewal - Reflection paper on iom future of nursing recommendations - Excel sam capstone project 1 campus fitness center - Change management power and influence simulation tips - Leadership theory application & skill development ebook - Eurydice poem analysis duffy - The rime of the ancient mariner worksheet answers - 95 kidderminster drive wantirna - WK3-0908 - 18 seares drive ringwood east - 23:00 in 24 hour time - The office classical conditioning - University of southampton bursary - Psychology-Suicide - Picot question for reducing hospital readmissions - History and Theory of New Media - Demeter and persephone myth summary - Case study - Uow referencing guide harvard - Average cost of loaf of bread in - Sge credit union online banking - Discussion - Educating rita study notes - Dog walking contract example - Series parallel circuit lab report conclusion - Media and culture 11th edition pdf - On the fireline: living and dying with wildland firefighters - Nervous conditions tsitsi dangarembga - Can bus common mode choke - Iprofile nutrition software free - Email Assignment - Michael jordan informative speech - Validity of secondary sources - Clinical worksheet for nursing students