Exercise 8-5 Calculating Break-Even Point, Target Profit, Margin of Safety, and CM Ratio (LO1 - CC2, 3; LO2 - CC6, 7,8) Wesley Company manufectures and selis a single product. The company's income statement at sales level of 40,500 units for last quarter follows: Required: 1. What is the monthly break-even point in units sold and in soles dollars? (Round your intermediate calculations and final answers to the nearest whole number.) 2. Without resorting to computations, calculate the total contribution margin of the break-everi point for the quarter, 3-a. How many units would have to be sold each quarter to earn a target profit of $32,400 ? Use the formula method 3.b. Verify your answer by preparing a contribution format incone statement of the target level of sales. 3-b. Verify yout answer by preporing a contribution format income statement at the targat level of sales 4. Refer to the original data. Compute the company's margin of safefy for the quarter in units, in dollars and as a percentege of last quarter's sales: (Pound "Percentage" answer to 1 decimal place, (D.e, 0.123 should be considered as 12.3x).) 5. What is the company's CM ratio? If quarterly sales decrease by $107,200 and there is no chenge in fixed expenses, what would you expect the quarter's net operating income to be? (Do not prepare an income statement, use the CM ratio to compite your answer)