User Account

All Pages

What is the monthly break-even point in unit sales

Assignment Help Accounting Basics
Reference no: EM132717573

Problem - Menlo Company distributes a single product. The company's sales and expenses for last month follow:

 

Total

Per Unit

Sales

$320,000

$20

Variable expenses

224,000

14

Contribution margin

96,000

$6

Fixed expenses

72,000

 

Net operating income

$24,000

 

Required -

1. What is the monthly break-even point in unit sales and in dollar sales?

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

3-a. How many units would have to be sold each month to earn a target pro?t of $32,400?

3-b. Verify your answer by preparing a contribution format income statement at the target sales level.

Reference no: EM132717573

Questions Cloud

Determine the number of common shares outstanding : Yeates declared a 4-for-1 stock split for the 340,000 outstanding shares of its $10 par value common stock. Determine the number of common shares outstanding
The bargaining mix : Define your targets and asking price - where will you start and what are your goals? What overall strategy do you want to select?
Compute the depreciation expense to be recognized each : Compute the depreciation expense to be recognized each calendar year for financial reporting purposes under the straight-line depreciation method
Planning the project-project to put humans on mars : Prepare a sample risk register for a project to put humans on Mars (four or five risks).
What is the monthly break-even point in unit sales : Menlo Company distributes a single product. The company's sales and expenses for last month follow: What is the monthly break-even point in unit sales
Negotiating during the searching and purchasing process : What steps must you take prior to calling a realtor and what must you be mindful of relative to negotiating during the searching and purchasing process?
Compute the ending inventory under moving-average cost : The company sold 2 units on January 8 and 4 units on January 15. Compute the ending inventory under moving-average cost
Determine the negotiation tactics : Determine the negotiation tactics you need to use to close the deal when negotiating the terms of a work situation that is ideal to you. Support your position.
Monetary investment is usually in merchandise inventory : For many retailers, their largest monetary investment is usually in the merchandise inventory

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd