Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total $ 624,000 436,800 Per Unit $ 40 28 Sales Variable expenses Contribution margin Fixed expenses Net operating income 187,200 $ 12 144,000 $ 43,200 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 $76,800? 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 sales increase by $52,000 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 complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3A Req 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 Per Total Unit Sales $ 704,000 X $ 40 Variable expenses 492,800 X 28 Contribution margin 211,200 $ 12 Fixed expenses 147,600 X Net operating income 63,600 X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req Req 3B Req 4 Reg 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 $ 132,000 21.15 X % X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req Req 3B Req 4 Req 5 What is the company's CM ratio? If sales increase by $52,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? CM ratio 30 % Net operating income increases by $ 29,100 X