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Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Per Unit $20 14 Contribution margin Fixed
Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Per Unit $20 14 Contribution margin Fixed expenses Net operating income Total $ 300,000 210,000 90,000 72,000 $ 18,000 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 $39.000? 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 ratlo? If sales Increase by $63,000 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. Reg1 Rega Req 3A Rega Reg 5 What is the monthly break-even point in unit sales and in dollar sales? units Break-even point in unit sales Break-even point in dollar sales
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