Damien Company manufactures and sells a single product. The company$$s income statement at sales level of $20,000$ units for last quarter follows:

Total

Sales $ $600,000$

Less: Variable expenses $420,000$

Contribution margin $180,000$

Less: Fixed expenses $150,000$

Net operating income $ $30,000$

Required:

$1.$ What is the monthly break$-$even point in units sold and in sales dollars?

$2.$ Without resorting to computations, calculate the total contribution margin at the break$-$even point for the quarter.

$3-$a$.$ How many units would have to be sold each quarter to earn a target profit of $$12,000?$ Use the formula method.

$3-$b$.$ Verify your answer by preparing a contribution format income statement at the target level of sales.

$4.$ Refer to the original data. Compute the company$$s margin of safety for the quarter in units, in dollars and as a percentage of last quarter$$s sales. $($Round "Percentage" answer to $1$ decimal place, i$.$e$.,0\mathrm{.}123$ should be considered as $12\mathrm{.}3\%.)$

$5.$ What is the company$$s CM ratio? If quarterly sales decrease by $$80,000$ and there is no change in fixed expenses, what would you expect the quarter$$s net operating income to be$?($Do not prepare an income statement; use the CM ratio to compute your answer.$)$