Exercise 6-18 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio (LO6-1, LO6-3, L06-5, L06-6, LO6-7) Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales $314,000 $ 20 Variable expenses 219.100 Contribution margin 94.200 Fixed expenses 24.400 Het 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 $30,6007 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 $69.000 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. Regt Regs Reg 2 Rea 3A Reg 30 Reg4 What is the monthly break-even point in unit sales and in dollar sales? Breskoven point in te the oven point is dollars Reg 23 m Homework Saved Exercise 6-18 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio [L06-1, L06-3, L06-5, LO6-6, L06-7) Menlo Company distributes a single product. The company's sales and expenses for last month follow: Per Unit $.20 14 Total $.314,000 219,800 94,200 74,400 $ 19,800 Sales Variable expenses Contribution margin Pixed expenses Net operating income $ 6 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 $30.600? 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 percentagerterms. 5. What is the company's CM ratio? If sales increase by $69.000 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 35 Reg4 Reg 5 Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin Son Homework Exercise 6-18 Break-Even and Target Profit Analysis: Margin of Safety; CM Ratio (LO6-1, LO6-3, L06-5, LO6-6, L06-7) Menlo Company distributes a single product. The company's sales and expenses for last month follow. Per Unit $20 Total $ 314,000 219,800 94,200 Sales Variable expenses Contribution margin Fixed expenses Het operating income 5 19,800 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 proft of $30,600? 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 $69,000 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. Reg30 Res Reg 2 Reg 1 Rugs Reg4 How many units would have to be sold each month to attain a target profit of $30,600 Unite ales neded to tow profit Reg2 Reg 30 > Menlo Company distributes a single product. The company's sales and expenses for last month follow. Per Unit $ 20 14 Sales Variable expenses Contribution margin Pixed expenses Net operating income Total $ 314,000 219.800 94,200 74.400 $ 19,800 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 $30,600? 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 $69.000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? ces Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Red 3A Reg 3B 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 Het operating income Total $ 314,000 219,800 94,200 74.400 Per Unit $.20 14 $6 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 $30,6002 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 $69,000 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. Rea 1 Reg 2 Raq Rea 38 Reg 4 tes Red What is the company's CM ratio? If sales increase by $69,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? CM ratio Nist operating income increases by