2 Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales $531, 090 $ 30 Variable expenses 212, 408 12 Contribution margin 318, 608 $ 18 15 Fixed expenses 254, 880 points Operating income $ 63,728 02-56:04 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? (Do not round Intermedlate calculations.) eBook Break-even point in unit sales Units Break-even point in sales dollars 2. Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution marginN 3-a. How many units would have to be sold each month to earn a target profit of $106,200? Use the formula method. Units sold units 15 points 02-55:30 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. eBook Menlo Company Contribution Income Statement Total Per unit4. 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 2 profit of $106,200? (Round the final answer to the nearest whole number.) Unit sales required units 15 points 02:54:52 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.) ebook Dollars Percentage Margin of safety 6. What is the company's CM ratio? If sales increase by $59,000 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