Menlo Company distributes a single product. The company's sales and expenses for last month follow:

Total Per Unit

Sales. $302,200 $20

Variable Expenses $211,400. $14

Contribution Margin. $90,600. $6

Fixed Expenses $76200

Net Operating Income. $14,400

How many units would have to be sold each month to earn a target profit of $28,200? Use the formula method.

Units Sold:

3-b.Verify your answer by preparing a contribution format income statement at the target sales level.

Contribution Income Statement:

4.Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms.Round your percentage answer to 2 decimal places (i.e .1234 should be entered as 12.34).

Margin of Safety in Dollars:

Margin of Safety in Percentage:

What is the company's CM ratio? If monthly sales increase by $73,000 and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?

CM Ratio Percentage:

Net Operating Income increases by: