Pringle company distributes a single product the companys

Reference no: EM13603383

Pringle Company distributes a single product. The company's sales and expenses for a recent month follow: Total Per Unit Sales $ 600,000 $40 Variable expenses 420,000 28 Contribution margin 180,000 $12 Fixed expenses 150,000 Net operating income $ 30,000

Required:

1. What is the monthly break-even point in units sold and in sales dollars? Break-even point in unit sales? units Break-even point in sales? dollars $

2. Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin? $ Dollars

3. How many units would have to be sold each month to earn a target profit of $18,000? Use the formula method. Units sold ?

4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. (Round your percentage answer to 1 decimal place.) Margin of safety. Dollars? Percentage?

5. What is the company's CM ratio? If monthly sales increase by $80,000 and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? CM ratio % Net operating income increases by $

Reference no: EM13603383

Questions Cloud

In august one of the processing departments at marchese : in august one of the processing departments at marchese corporation had beginning work in process inventory of 34000

On september 25 2010 a hurricane destroyed the work in : on september 25 2010 a hurricane destroyed the work in process inventory of biloxi corporation. at that time the

What is the magnitude of the acceleration of an electron : what is the magnitude of the acceleration of an electron at a point where the electric field has magnitude 6667 nc and

For each of the variables below state what level of : for each of the variables below state what level of measurement it is and is it discrete or continuousexample height-ir

Pringle company distributes a single product the companys : pringle company distributes a single product. the companys sales and expenses for a recent month follow

By what angle alpha should the direction of his shot trail : hockey player a carries the puck on his stick and moves in the direction shown with a speed va4 ms. in passing the puck

What is julies average speed on the way to grandmothers : julie drives 100 mi to grandmothers house. on the way to grandmothers julie drives half the distance at 43.0 and half

Assuming approximately normal distributions having equal : a sample of four tires is taken from alot of brand-a tires. another sample of four tires is taken from a lot of brand-b

Fortuna company purchased merchandise for resale from lemar : fortuna company purchased merchandise for resale from lemar company with an invoice price of 29100 and credit terms of

User Account

All Pages