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Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales Variable expenses S 320,000 $20 14
Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales Variable expenses S 320,000 $20 14 224,000 96,000 $ 6 Contribution margin Fixed expenses 73,200 Net operating income $ 22,800 Required 1. What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit sales Break-even point in sales dollars units 2. Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin 3-a. How many units would have to be sold each month to earn a target profit of $37,800? Use the formula method. Units sold
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