Exercise 5-18 (Static) Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio [L051, LOB-2, L054, LOB5. LOB6] Menlo Company distributes a single product. The company's sales and expenses for last month follow: Per Total Unit Sales $ 450,000 $ 30 Variable expenses 180,000 12 Contribution margin 2 70 , 000 $ 18 Fixed expenses 2 l6 , 0 00 Net operating income $ 54,000 Required: 1. What is the monthly breakeven point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3a. How many units would have to be sold each month to attain a target profit of $90,000? 3b. Verify your answer by preparing a contribution format income statement at the target sales levelt 4. Refer to the original data. Compute the company's margin of safety in dollar and percentage terms. 5. What is the company's CM ratio? lfthe company can sell more units, thereby increasing sales 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Req 4 Req 5 What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit sales units Break-even point in dollar sales Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Req 4 Req 5 Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Req 4 Req 5 How many units would have to be sold each month to attain a target profit of $90,000? Units sales needed to attain target profit Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Req 4 Req 5 Refer to the original data. Compute the company's margin of safety in dollar and percentage terms. Dollars Percentage Margin of safety %