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ACC - Pringle Company distributes a single product

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Question;Pringle Company distributes a single product. The company's sales and expenses for a recent month follow;Pringle Company distributes a single product. The company's sales and expenses for a recent month follow;p. 216;Required;1 What is the monthly break-even point in units sold and in sales dollars?;2 Without resorting to computations, what is the total contribution margin at the break-even point?;How many units would have to be sold each month to earn a target profit of $18,000? Use the formula method. Verify your answer;3 by preparing a contribution format income statement at the target level of sales.;4 Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms.;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;5 would you expect monthly net operating income to increase?

 

Paper#42282 | Written in 18-Jul-2015

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