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3 - . How many units would have to be sold each month to attain a target profit of $ 3 6 , 6 0
How many units would have to be sold each month to attain a target profit of $
b Verify your answer by preparing a contribution format income statement at the target sales level.
Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms.
What is the company's CM ratio? If the company can sell more units thereby increasing sales by $ per month and there is no
change in fixed expenses, by how much would you expect monthly net operating income to increase?
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Verify your answer by preparing a contribution format income statement at the target sales level.
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