19 Exercise 5-18 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio (LO5-1, LO! LO5-6, LO5-7) 0.52 points Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Total $624,000 436,800 Per Unit $ 40 28 $ 12 Contribution margin Fixed expenses Net operating income 187,200 146,400 40,800 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? Answer is complete but not entirely correct. units Break-even point in unit sales Break-even point in sales dollars 305 12,200 $ 19 4. 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 (i.e 1234 should be entered as 12.34). 0.52 points Answer is complete but not entirely correct. Dollars Percentage Margin of $ 40,800 safety 0.30 % 5. What is the company's CM ratio? If monthly sales increase by $87,000 and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? 5. What is the company's CM ratio? If monthly sales increase by $87,000 and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Answer is complete but not entirely correct. 7 % CM ratio Net operating income increases by 5,688