Menlo Company distributes a single product. The company's sales and expenses for last month follow. Sales Variable expenses Contribution margin. Fixed expenses Operating income Total Per Unit $486,000 194,400 291,600 $ 30 12 $18 233,280 $ 58,320 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? (Do not round intermediate calculations.) Answer is complete and correct. Break-even point in unit sales 12,960 units Break-even point in sales dollars $ 388,800 2. Without resorting to computations, what is the total contribution margin at the break-even point? Answer is complete and correct. 6 Total contribution margin $ 233,280 3-a. How many units would have to be sold each month to earn a target profit of $97,200? Use the formula method Answer is complete and correct. Units sold 18,360) units 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. Answer is complete but not entirely correct. Menlo Company Contribution Income Statement Total Per unit Sales Variable expenses $ 486,000 $ 30 194,400 12 Contribution margin 291,600 $ 18 Fixed expenses Operating income 233,280 $ 58,320 Return to 4. Refer to part 3 and now assume that the tax rate is 30% How many units would need to be sold each month for an after-tax target profit of $97,200? (Round the final answer to the nearest whole number.) Answer is complete but not entirely correct. Unit sales required 13,038 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 decimal places.) Dollars Percentage Margin of safety 6. What is the company's CM ratio? If sales increase by $54,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? (Round your percentage answer to 2 decimal places and other answer to the nearest whole dollar amount.) Answer is complete but not entirely correct. CM ratio Monthly operating income increases by 30 00 % 16,200