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Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 450,000 180,000 270,000 216,000 $ 54,000 Per Unit $ 30 12 $ 18 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 no change in fixed expenses, by how much would you expect monthly net operating income increase? Complete this question by entering your answers in the tabs below. Req1 Reg 2 Req Reg 38 Req 4 Reg 5 What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit sales 12,000 units Break-even point in dollar sales 360,000 Reg 2 > Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req Req 3B Reg 4 Req5 Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req Req 3B Reg 4 Req 5 How many units would have to be sold each month to attain a target profit of $90,000? Units sales needed to attain target profit Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req Reg 3B Reg 4 Req 5 Verify your answer by preparing a contribution format Income statement at the target sales le Menlo Company Contribution Income Statement Total Per unit 0 $ A 0 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Req 3B Req 4 Reg 5 Refer to the original data. Compute the company's margin of safety in both dollar and percentage te Dollars Percentage Margin of safety Complete this question by entering your answers in the tabs below. Req1 Reg 2 Req 3A Reg 3B Req 4 Req5 What is the company's CM ratio? If the company can sell more units thereby increasing sales by $50,000 per mont is no change in fixed expenses, by how much would you expect monthly net operating income to Increase? CM ratio Net operating income increases by Reg 4 Regs