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

Total Per Unit

Sales $ $600,000$ $ $40$

Variable expenses $420,00028$

Contribution margin $180,000$ $ $12$

Fixed expenses $154,800$

Net operating income $ $25,200$

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 $$64,800?$

$3-$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$$s CM ratio? If the company can sell more units thereby increasing sales by $$66,000$ per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?