Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Contribution margin Fixed expenses Net operating income Required: Total $ 308,000 Per Unit $ 20 215,600 14 92,400 $ 6 76,800 $ 15,600 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 $31,800? 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 the company can sell more units thereby increasing sales by $81,000 per month and there is change in fixed expenses, by how much would you expect monthly net operating income to increase? Req 1 Req 2 Req 3A Req 3B Req 4 Req 5 How many units would have to be sold each month to attain a target profit of $31,800? Units sales needed to attain target profit 17,100 Req 1 Req 2 Req 3A Req 3B Req 4 Verify your answer by preparing a contribution format income stater Menlo Company Contribution Income Statement Total Per Unit Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 342,000 $ 20 239,400x 102,600 $ 76,800 $ 25,800 14 6 Req Req 2 Req 3A Req 38 Req 4 Reap What is the company's CM ratio? If the company can sell more units thereby increasing sales by $81,000 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 $ 16,200