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Could someone please solve this and show me the steps? Menlo Company distributes a single product. The company's sales and expenses for last month folla
Could someone please solve this and show me the steps?
Menlo Company distributes a single product. The company's sales and expenses for last month folla Total Sales Variable expenses r Unit S 40 28 $620,000 434.000 186,000 152,400 S 33,600 Contribution margin Fixed expenses S 12 Net operating income Required: 1. What is the monthly braak-even point in unit sales and in dollar sales? Break-even point in unit sales Break even paint in sales dollars units 2. Without resorting to compulations, what is the toltal contnbution margin at the break-even point? 3-a. How many units would have to be sold each month to earn a target profit of $54,000? Use the formula method sold 3-b. Verify your answer by preparing a contribution format income statement at the target sales leval Menlo Company Contribution Income Statement Total Per unit 4. Refer to the original data. Compute the company's margin of safety in both dollar and parcentage terms. Round your percentage answer to 2 decimal places (i.e.1234 should be entered as 12.34). Margin of safety Whal is the company's CM ratio? H manthly sales increase by S84,000 arnd there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? CM ratio Net operaling income increases byStep by Step Solution
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