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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 Operating income Total
Menlo Company distributes a single product. The company's sales and expenses for last month follow, Sales Variable expenses Contribution margin Fixed expenses Operating income Total $468,000 187,200 280,800 224,640 $ 56,160 Per Unit $ 30 12 $18 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? (Do not round intermediate calculations.) units Break-even point in unit sales Break-even point in sales dollars 2. Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin 3-a. How many units would have to be sold each month to earn a target profit of $93.600? Use the formula method. Units sold units 3-b. Verify your answer by preparing a contribution format Income statement at the target sales level Menlo Company 3-b. Verify your answer by preparing a contribution format income statement at the target sales level Menlo Company Contribution Income Statement Total Per unit 0 S 0 S 0 6. What is the company's CM ratio? if sales increase by $52.000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? (Round your percentage answer to 2 decimal places and other answer to the nearest whole dollar amount.) CM ratio Monthly operating income increases by
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