a. Only whole numbers are to be entered as answers. Therefore, DO NOT put any signs in such as $, %, #, or a comma etc. in your answer. For example, if your answer is $1234 you should write 1234 as...


a. Only whole numbers are to be entered as answers. Therefore, DO NOT put any signs in such as $, %, #, or a comma etc. in your answer. For example, if your answer is $1234 you should write 1234 as your<br>answer and if your answer is 4%, write 4 as your answer.<br>b. Indicate a negative number by putting a minus sign in front. Therbfore, if your answer is negative 1234 you need to post -1234 as your answer.<br>c. Round your answer to the nearest whole number, I.e. no decimal points. So if your answer is 1234.60 you should write 1235.<br>Menlo Company distributes a single product. The company's sales and expenses for last month follow:<br>Total<br>Per Unit<br>Sales<br>$ 628,000<br>40<br>Variable expenses<br>439,600<br>28<br>Contribution margin<br>188,400<br>%24<br>12<br>Fixed expenses<br>150,000<br>Net operating income<br>$ 38,400<br>Required:<br>1. What is the monthly break-even point in unit sales.<br>2. What is the total contribution margin at the break-even point?<br>3. How many units would have to be sold each month to attain a target profit of $56,400?<br>4. Refer to the original data. Compute the company's margin of safety in dollar terms.<br>5. If sales increase by $90,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?<br>

Extracted text: a. Only whole numbers are to be entered as answers. Therefore, DO NOT put any signs in such as $, %, #, or a comma etc. in your answer. For example, if your answer is $1234 you should write 1234 as your answer and if your answer is 4%, write 4 as your answer. b. Indicate a negative number by putting a minus sign in front. Therbfore, if your answer is negative 1234 you need to post -1234 as your answer. c. Round your answer to the nearest whole number, I.e. no decimal points. So if your answer is 1234.60 you should write 1235. Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales $ 628,000 40 Variable expenses 439,600 28 Contribution margin 188,400 %24 12 Fixed expenses 150,000 Net operating income $ 38,400 Required: 1. What is the monthly break-even point in unit sales. 2. What is the total contribution margin at the break-even point? 3. How many units would have to be sold each month to attain a target profit of $56,400? 4. Refer to the original data. Compute the company's margin of safety in dollar terms. 5. If sales increase by $90,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?

Jun 10, 2022
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