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Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales Variable expenses $535,500 $30 214,200
Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales Variable expenses $535,500 $30 214,200 Contribution margin 321,300 12 $18 Fixed expenses 257,040 Operating income $ 64,260 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? (Do not round intermediate calculations.) Break-even point in unit sales Break-even point in sales dollars $ 14,280 428,400 units. 2. Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin $ 321,300 3-a. How many units would have to be sold each month to earn a target profit of $107,100? Use the formula method. Units sold 20,230 units
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