Menlo Company distributes a single product. The company's sales and expenses for last month follow Total 312,000 218,400 93,600 72,000 Per Unit $ 20 14 Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 21,600 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 $40,200? 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 $78,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Data for Hermann Corporation are shown below: Percent of Sales 100% 7 0 30% Per Unit Selling price Variable expenses Contribution margin $ 90 6 3 $ 27 Fixed expenses are $78,000 per month and the company is selling 3,500 units per month Exercise 5-5 Part1 Required 1-a. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $8,300 and monthly sales increase by $16,500? 1-b. Should the advertising budget be increased