Award: 148 points Menlo Company distributes a single product. The company's sales and expenses for last month follow Total Per Unit Sales $ 450,000 530 Variable expenses 180.000 12 Contribution margin 270,000 $ 18 Fixed expenses 216.000 Net operating income $ 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? 3-0. 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 550,000 per month and there is no 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. Reg! Reg 2 Reg 3A Reg 3B Reg 4 Reg 5 What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit sales Break-even point in dollar sales units C Rog Reg 2 > References Worksheet Leaming Objective: 05-07 Compute the margin of safety and explain its significance Leaming Objective: 05-03 Use the contribution margin ratio (CM ratio) to compute changes in contribution margin and net operating income resulting from changes in sales volume. Difficulty: 1 Easy Learning Objective: 05-05 Determine the break-even point