Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total $ 316,000 221,200 Per Unit $ 20 Sales Variable expenses 14 94,800 $ 6 Contribution margin Fixed expenses Net operating income 74,400 20,400 $ 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 of $37,800? 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 $76,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg Reg 3B Req 4 Reg 5 Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin $ 248,000 x Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Contribution margin Total $ 316,000 221,200 Per Unit $ 20 14 94,800 $ 6 Fixed expenses 74,400 $ 20,400 Net operating income 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 of $37,800? 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 $76,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req Req 3B Reg 4 Reg 5 How many units would have to be sold each month to attain a target profit of $37,800? Units sales needed to attain target profit 74,400 x 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 of $37,800? 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 $76,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? X Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3A Reg 3B Reg 4 Reg 5 Verify your answer by preparing a contribution format income statement at the target sales level. Menlo Company Contribution Income Statement Total Per Unit Sales Variable expenses Contribution margin 000 0 $ 0 Fixed expenses Net operating income $ 0 Dron Mout 1 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 of $37,800? 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 $76,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? X Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req Req 3B Req 4 Req 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 decimal places (i.e. 0.1234 should be entered as 12.34).) Dollars Percentage Margin of safety % Return to question 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 of $37,800? 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 $76,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req Req 3B Reg 4 Reg 5 What is the company's CM ratio? If the company can sell more units thereby increasing sales by $76,000 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
