05-5 Exercise 5-18 Break-Even and Target Profit Analysis; Margin of Safety: CM Ratio [LO5-1, LO5-3, L LO5-6, LO5-7 Menlo Company distributes a single product. The company's sales and expenses for last month follow Per Unit s 20 Total 304,000 Sales Variable expenses Contribution margin Pixed expenses Net operating income 14 212,800 91,200 73,200 18,000 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 attain a target profit of $40,200? 3-b. Verify yo 4. Refer to the original data. Compute the company's margin of safety in both dollar and 5. What is the com would you expect monthly net operating income to increase? ur answer by preparing a contribution format income statement at the target sales level. e terms. pany's CM ratio? If sales increase by $55,000 per month and there is no change in fixed expenses, by how much mplete this question by entering your answers in the tabs below