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I am trying to figure out the way to understand. if anyone could do it with an explanation please. answer with an explanation. Menlo Comoanyr

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I am trying to figure out the way to understand. if anyone could do it with an explanation please. answer with an explanation.

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Menlo Comoanyr distributes a single product The company's sales and expenses for last month follow: Total Par limit Sales $540,000 5 32 Variable expenses 220,000 12 Contribution margin 320, 0 00 $ 20 Fixed expanses 240,000 Operating income 5 30 , 0 00 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? (Do not round intermediate calculations.) Break-even point in unit sales _- Breakeven point in sales dollars 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-3. How many units would have to be sold each month to earn a target profit of $96,000? Use the formula method. _ anus 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. 4. Refer to part 3 and now assume that the tax rate is 30%. How many units would need to be sold each month for an after-tax target prot of $96,000? (Round the nal answer to the nearest whole number.) _- 5. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. {Round your percentage answer to 2 decimal places.) __a 6. What is the company's CM ratio? if sales increase by $58,000 per month and there is no change in xed expenses. by how much would you expect monthly net operating income to increase? {Round your percentage answer to 2 decimal places and other answer to the nearest whole dollar amount} CM ratio Monthly operating income increases by

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