Menlo Company distributes a single product. The companys sales and expenses for last month follow:

	Total		Per Unit
Sales	$	450,000		$	30
Variable expenses		180,000			12
Contribution margin		270,000		$	18
Fixed expenses		216,000
Operating income	$	54,000

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 earn a target profit of $90,000? Use the formula method.