Exercise 5-18 (Algo) Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio (LO5-1, LO5-3, LO5-5, LO5-6, LO5-7) Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Contribution margin Fixed expenses Net operating Income Total $636,000 445 200 190,800 150,000 $ 40,300 Per Unit $ 40 28 $ 12 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 $55,200? 3-6. 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 of the company can sell more units thereby increasing sales by $87,000 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. Reg1 Reg 2 Reg 3A Reg 38 Reg4 Req5 What is the monthly break even point in unit sales and in dollar sales? units Break-even point in unit sales Break-even point in dollar sales Menlo Company distributes a single product. The company's sales and expenses for last month follow. Per Unit $ 40 28 $ 12 Total $636,000 445,200 190,800 150,000 $ 40,800 Sales Variable expenses Contribution margin Fixed expenses Net operating income 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 $55,200? 3-5. 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 587000 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 1 Reg 2 Reg 3A Roq 3B Req1 Reg 5 Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin Menlo Company distributes a single product. The company's sales and expenses for last month follow Per Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $636,000 445,200 190,800 150.000 $ 40,800 Unit $40 28 $ 12 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 $55,200? 3.5 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 $87,000 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 1 Reg 2 Regla Reg 38 Reg 4 Reg 5 How many units would have to be sold each month to attain a target profit of $55,2002 Units sales needed to attain target profit Menlo Company distributes a single product. The company's sales and expenses for last month follow. Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $636,080 445,200 190,800 150,000 $ 40,800 Per Unit $40 28 $ 12 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 $55,200? 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 $87,000 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 1 Reg 2 Req 3A Rog 38 Reg 4 Reg 5 Verify your answer by preparing a contribution format income statement at the target sales level. Menlo Company Contribution Income Statement Total Per Unit Menlo Company distributes a single product. The company's sales and expenses for last month follow Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $636,000 445,200 190,800 150,000 $ 40,800 Per Unit $40 28 $ 12 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 $55,2002 3-6 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 of the company can sell more units thereby increasing sales by $87000 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 1 Reg 2 Red 3A ROG 3B Reg 4 Reg 5 Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. (Round your percentage answer to 2 decimal places 1.0.1234 should be entered as 12,34).) Dollars Percentage Margin of safety Menlo Company distributes a single product. The company's sales and expenses for last month follow Per Total Unit Sales $636,000 $40 Variable expenses 445,200 28 Contribution margin 190,800 $ 12 Fixed expenses 150.000 Net operating income $ 40,300 Required: 1. What is the monthly break-even point in unt 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 $55,200? 3.5 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 $87,000 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 1 Reg 2 Reg 3A Reg 3B Reg 4 Reg 5 What is the company's CM ratio? If the company can sell more units thereby increasing sales by $87,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? % CM ratio Net operating income increases by