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

Return to ques Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Total $620,000 434,000 Per Unit $40 28 $ 12 Contribution margin Fixed expenses 186,000 151,200 Net operating income $ 34,800 3- How many units would have to be sold each month to earn a target profit of a. $60,000? Use the formula method. Answer is complete but not entirely correct. Units sold 18,900 X 3- Verify your answer by preparing a contribution format income statement at the target b. sales level. Answer is complete but not entirely correct. > Menlo Company Contribution Income Statement Per Total unit Sales $ 756,000 X $ 40 Variable expenses 529,200 X 28 Contribution margin 226,800 $ 12 Fixed expenses 151,200 Net operating income $ 75,600