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LO5-5, LO5-6, LO5-7] its Menlo Company distributes a single product. The company's sales and expenses for last month follow: Per Total Unit eBook Sales $

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LO5-5, LO5-6, LO5-7] its Menlo Company distributes a single product. The company's sales and expenses for last month follow: Per Total Unit eBook Sales $ 636,000 $ 40 Variable expenses 445, 200 28 Contribution margin 190, 800 $ 12 152 , 400 Ask Fixed expenses Net operating income $ 38, 400 Required: Print 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 $72,000? References 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 the company can sell more units thereby increasing sales by $85,000 per month and th 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. Req 1 Reg 2 Req 3A Req 3B Reg 4 Req 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 (i.e. 0.1234 should be entered as 12.34).) Dollars Percentage Margin of safety % Req 3B Req 5 > Mc Graw

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