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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
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 $ 312,000 218,400 Total Per Unit $ 20 14 93,600 72,000 $ 6 $ 21,600 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-a. How many units would have to be sold each month to attain a target profit of $31,200? 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B 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
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