Menlo Company distributes a single product. The company's sales and expenses for last month follow: Per Unit $ 30 14 Total $580,000 200,000 380,000 240,000 $140,000 Sales Variable expenses Contribution margin Fixed expenses Operating income $ 16 s Required: 1. What is the monthly break-even point in unit sales and in dollar sales? (Do not round intermediate calculations.) Break-even point in unit sales units 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 $88,000? Use the formula method. Units sold units 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. es Menlo Company Contribution Income Statement Total Per unit 0 $ 0 $ 0 4. Refer to part 3 and now assume that the tax rate is 30%. How many units would need to be sold each month for an after-tax target profit of $88,000? (Round the final answer to the nearest whole number.) Unit sales required units s 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.) Dollars Percentage Margin of safety % 6. What is the company's CM ratio? If sales increase by $42,000 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