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Menlo Company distributes a single product. The company's sales and expenses for last month follow: Required: What is the monthly break - even point in
Menlo Company distributes a single product. The company's sales and expenses for last month follow:
Required:
What is the monthly breakeven point in unit sales and in dollar sales?
Note: Do not round Intermedlate calculations.
Without resorting to computations, what is the total contribution margin at the breakeven point?
Total contribution margin
a How many units would have to be sold each month to earn a target profit of $ Use the formula method.
b Verify your answer by preparing a contribution format income statement at the target sales level.
Refer to part and now assume that the tax rate is How many units would need to be sold each month for an aftertax
target profit of $
Note: Round the final answer to the nearest whole number.
Unit sales required
units
Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms.
Note: Round your percentage answer to decimal places.
What is the company's CM ratio? If sales increase by $ per month and there is no change in fixed expenses, by how
much would you expect monthly net operating income to increase?
Note: Round your percentage answer to decimal places and other answer to the nearest whole dollar amount.
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