2 Exercise 6-18 Break-Even and Target Profit Analysis; Margin of Sefety, CM Retio [LO6-1, LO6-3, LO6-5, LO6-6, LO6-7 Menlo Company distributes a single product. The company's sales and expenses for last month follow Total $ 318,000 222,60e Per Unit Sales Variable expenses Contribution margin Fixed expenses $ 28 14 eBook 95,480 77,480 S 6 Net operating income 18,eee Print Requlred: 1 What is the monthly break-even point in unit sales and in dollar sales? 2 Without resorting to computations, what is the total contributlon margin at the break-even point? 3-8. How many units would have to be sold each month to ettain a target profit of $33.000? 3-b. Verify your answer by preparing a contribution format income statement at the target sales level 4 Refer to the original data. Compute the company's margin of safety in both doilar and percentage terms. S. What is the company's CM ratio? If sales increase by $69.000 per month and there is no change in fixed expenses. by how much would you expect monthly net operating income to increase? rerances Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Rea 3B Req 4 Req 5 What is the monthly break-even point in unit sales and in dollar sales? Sreakeven point in unt sales unts Break-evan pdint in colar aales Reg 2 Prev 2 ot: Next>