Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total $ 636,000 445,200 190, 800 153,600 $ 37,200 Per Unit $ 40 28 $ 12 Sales Variable expenses Contribution margin Fixed expenses Net operating 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 $66,000? 3-b. Verify your answer by preparing a contribution format income statement at the terget 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 $83,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? 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 $66,000? 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 $83,000 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 2 Req1 Reg 3A Reg 4 Reg 38 Reg 5 What is the monthly break-even point in unit sales and in dollar sales? units Break-even point in unil sales Break-even point in dollar sales Ron Reg 2 > les 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 $66,000? 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 $83,000 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 3A Req 38 Reg 4 Reg 5 Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin ( Req1 Reg 3A > et operating Income equired: What is the monthly break-even point in unit sales and in dollar sales? Without resorting to computations, what is the total contribution margin at the break-even point? -a. How many units would have to be sold each month to attain a target profit of $66,000? 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 $83,000 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 2 Ren, Reg 1 Req 3B Reg 4 Reqs How many units would have to be sold each month to attain a target profit of $66,000? Units salos needed to attain target profit Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3A Req 3B Reg 4 Reg 5 Refer to the original data. Compute the company's margin of safety in both dollar and percentag percentage answer to 2 decimal places (1.e. 0.1234 should be entered as 12.34).) Dollars Percentage % Margin of safety Req 38 Req Reg 4 Reg 1 Reg 2 Reg 5 What is the company's CM ratio? If the company can sell more units thereby increasing sales by $83,000 per month and 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
