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Menlo Company Contribution Income Statement Total Per unit Sales Variable expenses Contribution margin 372,000 20 260,400 111,600 6 75,000 14 xed expenses Net operating income

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Menlo Company Contribution Income Statement Total Per unit Sales Variable expenses Contribution margin 372,000 20 260,400 111,600 6 75,000 14 xed expenses Net operating income s36,600 4. 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.1234 should be entered as 12.34). Margin of safety $56.000 5. What is the company's CM ratio? If monthly sales increase by $73,000 and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? CM ratio 18:96 Net operating income increases by 9

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