4. 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 (i.e .1234 should be entered as 12.34).

5. What is the companys CM ratio? If monthly sales increase by $70,000 and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?

Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total 434,000 186,000 Per Unit S 40 28 Sales Variable expenses $620,000 $ 12 Contribution margin Fixed expenses 154,800 Net operating income 31,200 Required 1. What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit sales Break-even point in sales dollars units 2. Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin 3-a. How many units would have to be sold each month to earn a target profit of $49,200? Use the formula method. Units sold 3-b. Verify your answer by preparing a contribution format income statement at the target sales level Menlo Company Contribution Income Statement Total Per unit