Menlo Company distributes a single product. The companys sales and expenses for last month follow: Total Per Unit Sales $ 624,000 $ 40 Variable expenses 436,800 28 Contribution margin 187,200 $ 12 Fixed expenses 147,600 Net operating income $ 39,600 Required:

1. What is the monthly break-even point in unit sales and in dollar sales also 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 $58,800?

4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. (Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34).)

5. What is the companys CM ratio? If sales increase by $61,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?