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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 Met operating Income
Menlo Company distributes a single product. The company's sales and expenses for last month follow Sales Variable expenses Contribution margin Fixed expenses Met operating Income Total 3 628,000 439,600 110,400 150.000 $ 30,400 Per Unit 0.40 20 $12 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 $70,800? 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 $70,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg JA Reg 38 Reg 4 Reg 5 What is the monthly break-even point in unit sales and in dollar sales? units Breakeven point in unt sales Break-even point in dollar sales Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req Req 3B Req 4 Reg 5 Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin Req 1 Req 2 Red 3A Req 3B Reg 4 Reg 5 How many units would have to be sold each month to attain a target profit of $70,800? Units sales needed to attain target profit Req 1 Req 2 Req 3A Req 3B Req 4 Reg 5 Verify your answer by preparing a contribution format income statement at the target sales level. Menlo Company Contribution Income Statement Total Per Unit Complete this question by entering your answers in the tabs below. Ceferences Reg 1 Reg 2 Req Req 38 Reg 4 Reg 5 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 (le. 0.1234 should be entered as 12.34).) Dollars Margin of safety Percentage % Complete this question by entering your answers in the tabs below. ces Reg 1 Reg 2 Req 3A Reg 38 Reg 4 Real What is the company's CM ratio? If the company can sell more units thereby increasing sales by $70,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating Income to increase? CM ratio Net operating income increases by
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