Menlo Company distributes a single product. The company's sales and expenses for last month follow: Per Total Unit Sales Variable expenses Fixed expenses $640,000 $40 448,000 28 Contribution margin 192,000 $12 151,200 Net operating income $ 40,800 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? 3-8. How many units would have to be sold each month to attain a target profit of $66,000? 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 $91,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 38 Req 4 Req 5 What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit sales Break-even point in dollar sales units Req 2> 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 $91,000 per change in fixed expenses, by how much would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Req 4 Req 5 Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin < Req 1 Req 3A > Sales Variable expenses Contribution margin Fixed expenses Net operating income i Required: Per Total Unit $640,000 $40 448,000 28 192,000 $12 151,200 $ 40,000 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 3-a. How many units would have to be sold each month to attain a target profit of $66 3-b. Verify your answer by preparing a contribution format income statement at the tar 4. Refer to the original data. Compute the company's margin of safety in both dollar an 5. What is the company's CM ratio? If the company can sell more units thereby increasi change in fixed expenses, by how much would you expect monthly net operating incor Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 34 Req 38 Req 4 Reg 5 How many units would have to be sold each month to attain a target profit of $66,000? Unis sales needed to attain target profe esc Q A e NO 2 N # $ 13 W E S x 4 Req 38 > < Previ MacBook % 5 6 R T D F G C > Variable expenses Contribution margin Fixed expenses 448,000 192,000 $12 28 151,200 Net operating income $ 40,800 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 3-a. How many units would have to be sold each month to attain a target profit a 3-b. Verify your answer by preparing a contribution format income statement at t 4. Refer to the original data. Compute the company's margin of safety in both doll What is the company's CM ratio? If the company can sell more units thereby inw change in fixed expenses, by how much would you expect monthly net operating 5. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 38 Reg 4 Reg 5 Verify your answer by preparing a contribution format income statement at the target Menio Company Contribution income Statement esc Total Per Unit Q 2 A 0 $ o =3 $ 4 > > Sales Variable expenses Contribution margin Fixed expenses Net operating income. Required: Total Unit $640,000 $ 48 448,000 28 192,000 $12 151,200 $ 40,800 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 t 3-a. How many units would have to be sold each month to attain a target prof 3-b. Verify your answer by preparing a contribution format income statement e 4. Refer to the original data. Compute the company's margin of safety in both c 5. What is the company's CM ratio? If the company can sell more units thereby change in fixed expenses, by how much would you expect monthly net operati Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 38 Req 4 Req 5 Refer to the original data. Compute the company's margin of safety in both dollar am percentage answer to 2 decimal places (ie. 0.1234 should be entered as 12.34).) Margin of safety esc Dollars Percentage <38 req5> # =3 @ 2 Q W A S < Prev $ 54 > % 5 a5 E R D LL F Mac T Req 1 Req 2 Req 3A Req 3B Req 4 Req What is the company's CM ratio? If the company can sell more units thereby increasing sales by $9. is no change in fixed expenses, by how much would you expect monthly net operating income to ine CM ratio Net operating income increases by % < Req 4 Req 5