Exercise 5-18 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio (L05-1, 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 $ 632,000 442,400 189,600 146,400 $ 43,200 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 $73,200? 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 sales increase by $63,000 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 Reg 3B Reg 4 Reg 5 What is the monthly break-even point in unit sales and in dollar sales? many would have to be sold each month to attain a target profit of $73,200? 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 sales increase by $63,000 per month and there is no change in fixed would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Reg 4 Req 5 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 1. WILL TELUI LIITY U 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 $73,200? 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 sales increase by $63,000 per month and there is no change in fixe would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req Req 3B Req 4 Reg 5 Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin Prev Prey 3 of Score answer > yuncu. 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 $73,200? 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 sales increase by $63,000 per month and there is no change in fixed ex would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Req 4 Reg 5 How many units would have to be sold each month to attain a target profit of $73,200? Units sales needed to attain target profit JUILJ Meuse DY DOJ,000 per month and there is no change would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req Req 3B Req 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 many have to be sold each month to attain a target profit of $73,200? 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 term 5. What is the company's CM ratio? If sales increase by $63,000 per month and there is no change in fixe would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Reg 4 Reg 5 What is the company's CM ratio? If sales increase by $63,000 per month and there is no change in fixed expe much would you expect monthly net operating income to increase? CM ratio % Net operating income increases by