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Menlo Company distributes a single product. The company's sales and expenses for last month follow. Sales Variable expenses Contribution margin Fixed expenses Net operating income

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Menlo Company distributes a single product. The company's sales and expenses for last month follow. Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 450,000 160,000 270,000 216,000 $ 54,000 Per Unit $ 30 12 $ 18 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 or $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 both 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? Complete this question by entering your answers in the tabs below. 4. Refer to the original data. Compute the company's margin of salely 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 $50,000 pe 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. Reg 1 Reg 2 Req 3A Reg 3B Req 4 Reg 5 What is the monthly break-even point in unit sales and in dollar sales? units Break-even point in unit sales Break-even point in dollar sales 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 $50,000 per mon 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: Reg 1 Reg 2 Reg 3A Req 3B Reg 4 Reg 5 Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Rog Req 3B Reg 4 Reg 5 How many units would have to be sold each month to attain a target profit of $90,000? Units sales needed to attain target profit Req 1 Reg 2 Req Req 3B Req 4 Reg 5 Verify your answer by preparing a contribution format income statement at the target sales le Menlo Company Contribution Income Statement Total Per unit Complete this question by entering your answers in the tabs below Req 1 Reg 2 "Req Req 3B Req 4 Reg 5 Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. Dollars Percentage Margin of safety % What is the company's CM ratio? If the company can sell more units thereby increasing sales by $50,000 per month and 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. Req1 Reg 2 Req 3A Req 3B Req4 Req 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? CM ratio % Net operating income increases by

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