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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 448,000
Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit $ $ Sales Variable expenses 448,000 640,000 40 28 Contribution $ 192,000 margin 12 Fixed expenses 145,200 Net operating $ 46,800 income 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 $72,000? 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 $64,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? > Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Req 4 Req 5 What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit 12,083 units sales Break-even point in $ dollar sales 483,333 < Req 1 Req 2 >
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