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

Total Per Unit

Sales $ $450,000$ $ $30$

Variable expenses $180,00012$

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?

$3-$a$.$ How many units would have to be sold each month to attain a target profit of $$90,000?$

$3-$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 dollar and percentage terms.

$5.$ What is the company$$s CM ratio? If the company can sell more units, thereby increasing sales by $$50,000$ per month, and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?