# ACC – Pringle Company distributes a single product

\$13.00

Category:

## Description

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?

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# ACC – Pringle Company distributes a single product

\$16.00

Category:

## Description

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?

## Reviews

There are no reviews yet.