Menlo Company distributes a single product. The company$$s sales and expenses for last month follow:

Total Per Unit

Sales $ $540,000$ $ $30$

Variable expenses $216,00012$

Contribution margin $324,000$ $ $18$

Fixed expenses $259,200$

Operating income $ $64,800$

Required:

What is the monthly break$-$even point in unit sales and in dollar sales?

Note: Do not round intermediate calculations.

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 earn a target profit of $$108,000?$ Use the formula method.

$3-$b$.$ Verify your answer by preparing a contribution format income statement at the target sales level.

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 profit of $$108,000?$

Note: Round the final answer to the nearest whole number.

Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms.

Note: Round your percentage answer to $2$ decimal places.

What is the company$$s CM ratio? If sales increase by $$60,000$ per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?

Note: Round your percentage answer to $2$ decimal places and other answer to the nearest whole dollar amount.