ditions, and one as operations would appear afton Aanges. Show both total and per unit data on your statements. Refer to the data in (3) above. How many stoves who sold at the new selling price to yield a minimum net operating income of $35.00 4. EXERCISE 4-18 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio (L01, LO3, L05, LO6, L07] Menlo Company distributes a single product. The company's sales and expenses for last month follow: TPIEC TP Total Per Unit = CM/Q 0 Sales Variable expenses Contribution margin Fixed expenses Net operating income FC $450,000 180,000 270,000 216,000 $ 54,000 $30 12 $18 CM unit Sales Required: What is the monthly break-even point in unit sales and in dollar sales? point? A 3. How many units would have to be sold each month to earn a target profit of $90,000? Use the formula method. 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 per- centage terms. 5. What is the company's CM ratio? If sales increase by $50,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase