EXERCISE 6-12 Target Profit and Break-Even Analysis; Margin of Safety; CM Ratio [L01, L03, L05, L06, L07] 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 Per Unit $450,000 180,000 $30 12 270,000 $18 216,000 $ 54,000 What is the monthly break-even point in units sold and in sales dollars? Required: 1. 2. 3. Without resorting to computations, what is the total contribution margin at the break-even point? 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.