Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales Variable expenses $ 603,000 40 425,600 28 Contribution margin 182,400 $ 12 Fixed expenses 148,300 Net operating income $ 33,600 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit sales 12.400 units 496,000 Break-even point in sales dollars 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 earn a target profit of $79.200? Use the formula method. Units sold 19,000 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. Menlo Company Contribution Income Statement Total Per unit Sales S 7,600,000S 40 28 Variable expenses Contribution margin 7,600,000 $ 12 Fixed expenses 7,600,000 Net operating income 4. Refer to part 3 and now assume that the tax rate is 40%. How many units would need to be sold each month to an after-tax target profit of $79,200? (Round the final answer to the nearest whole number.) Unit sales required units 5. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. (Round your percentage answer to 2 clecimal places (i.e .1234 should be entered as 12.34).) Dollars Percentage Margin of safety 6. What is the company's CM ratio? If monthly sales increase by $76.000 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