CHAPTER FIVE REQUIRED HOME 2 Menlo Comporiy distributes a single product. The company's sales and expenses for last month follow. 3 PAREDE 340 Total 8624,000 035, 00 187,200 156,000 $ 31,200 $12 Vaccable expenses Contribution margin Pixed expert Wet operating Income ZOROR co 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 $61,2002 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? Ir the company can sell more units thereby increasing sales by $69,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to Increase? Pent Complete this question by entering your answers in the tabs below. Req! Reg 2 RedBA Reg 38 Reg 4 Reg 5 Venify your answer by preparing a contribution format home statement at the target sales level. Manlio Company Contribution Income Statement Total Per Unit 3 Re4 A 43 1 Miller Company's contribution format Income statement for the most recent month is sho Sales (42,000 units) Variable expenses Contribution margin Fixed expenses Net operating income oints Total $ 378,000 252.000 126,000 49,000 $ 77,000 Per Unit $ 9.00 6.00 $ 3.00 2 02:04:21 Skipped eBook Required: (Consider each case independently): 1. What is the revised net operating income if unit sales increase by 14%? 2. What is the revised net operating income if the selling price decreases by $1.10 per un 17%? 3. What is the revised net operating income if the selling price increases by $1.10 per unit number of units sold decreases by 3%? 4. What is the revised net operating income if the selling price per unit increases by 20%, unit, and the number of units sold decreases by 7%? Hint ASK