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 profit of $86,000? Use formula method.

3 (b) verify your answer by preparing a contribution formst income statement at the target sales level.

4. Refer to part 3 and now assume that the tax rate is 30%. How many units would need to be sold each month for an after-tax target profit if $86,000? (Round the final answer to the nearest whole dollar)

5. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. (Round your percentage answer to 2 decimal places).

6. What is the company's Contribution Margin Ratio? If sales increase by $60,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating incone to increase? (Round yoyr percentage answer to 2 decimal places and other answer to the nearest whole dollar amount).

i step by step explanation and answers thanks.

$500,000 132 12 209, epe Sales Variable expenses Contribution margin Fixed expenses Operating income 120 240,000 180, eee $160,000 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? (Do not round Intermediate calculations.) units Break-even point in unit sales 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 3-2. How many units would have to be sold each month to earn a target profit of $86.000? Use the formula method. Unibeeld 3-b. very your answer by preparing a contribution format Income statement at the target sales teve. Menlo Company Contribution Income Statement Total Per unit Sales Contributorgin OS Operating in 0 4. Refer to part 3 and now assume that the tax rate is 30%. How many units would need to be sold each month for an after-tax target pront of $86,000? (Pound the final answer to the nearest whole number) Un sales reputed Biunits 5. Refer to the original data. Compute the company's margin of safety In both dollar and percentage terms. (Round your percentage answer to 2 decimal places.) Dollar percentage Margin of safety 6. What is the company's CM ratlo? If sales increase by $60,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating Income to Increase? (Round your percentage answer to 2 decimal places and other answer to the nearest whole dollar amount) CM ratio Monthly operating income increases by