I wanna know the answer and solution manual of Exercise 4-18

per unit data on your statements. h total and 4. Refer to the data in (3) above. How many stoves would have to be sold at the new selling price to yield a minimum net operating income of $35,000 per month? Of LO6, L07] EXERCISE 4-18 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio [LO1, L03, L05, O follow: Menlo Company distributes a single product. The company's sales and expenses for last month Total Per Unit Sales $450,000 $30 Variable expenses 180,000 12 Contribution margin 270,000 $18 Fixed expenses 216,000 Net operating income . . $ 54,000 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. 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. 4. Refer to the original data. Compute the company's margin of safety in both dollar and per- centage terms. 5. What is the company's CM ratio? If sales increase 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