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25 points Menlo Company distributes a single product. The company's sales and expenses for last month follow: Per Book Total Unit Sales $450,000 $30
25 points Menlo Company distributes a single product. The company's sales and expenses for last month follow: Per Book Total Unit Sales $450,000 $30 Print Variable expenses 180,000 121 References Contribution margin 270,000 $18 Fixed expenses Het operating income 216,000 $54,000 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 $90,000? 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 dollar and percentage terms. 5. What is the company's CM ratio? If the company can sell more units thereby increasing sales by $50,000 per month and there is not change in fixed expenses, by how much would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Prepare a contribution format income statement for the game last year. Magic Realm, Incorporated Contribution Income Statement Total Per Unit 0 $ 0 0
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