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

follow:

Required:

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

Without resorting to computations, what is the total contribution margin at the break$-$even

point?

How many units would have to be sold each month to earn a target profit of $$90,000?$ Use the

formula method. Verify your answer by preparing a contribution format income statement at

the target sales level.

Refer to the original data. Compute the company's margin of safety in both dollar and per$-$

centage terms.

What is the company's $CM$ ratio? If sales increase 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?