4 points 1 Exercise 8-5 Calculating Break-Even Point, Target Profit, Margin of Safety, and CM Ratio (LO1 - CC2, 3; LO2 - CC6, 7, 8) Wesley Company manufactures and sells a single product. The company's income statement at sales level of 24,000 units for last quarter follows: Sales Less: Variable expenses Contribution margin Total $960,000 672,000 288,000 eBook Less: Fixed expenses Net operating income 234,432 $ 53,568 Print References Required: 1. What is the monthly break-even point in units sold and in sales dollars? (Round your intermediate calculations and final answers to the nearest whole number.) Break-even point in units sold Break-even point in sales dollars Break-even Point 2. Without resorting to computations, calculate the total contribution margin at the break-even point for the quarter. Total contribution margin $ 0 $19.2002 Use the formula method. LO5-CVP-Assignment 1 Saved 2. Without resorting to computations, calculate the total contribution margin at the break-even point for the quarter. 4 Total contribution margin $ 0 points eBook 3-a. How many units would have to be sold each quarter to earn a target profit of $19,200? Use the formula method. Print Units sold to attain target profit References 3-b. Verify your answer by preparing a contribution format income statement at the target level of sales. Sales Total Unit 253,632 0 $ 253,632 Mc Print References 4. Refer to the original data. Compute the company's margin of safety for the quarter in units, in dollars and as a percentage of last quarter's sales. (Round "Percentage" answer to 1 decimal place, (i.e., 0.123 should be considered as 12.3%).) Margin of safety Units Dollars Percentage % 5. What is the company's CM ratio? If quarterly sales decrease by $89,600 and there is no change in fixed expenses, what would you expect the quarter's net operating income to be? (Do not prepare an income statement; use the CM ratio to compute your answer.) CM ratio Net operating income % Prev 1 of 4 Next >