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Menlo Company distributes a single product. The company's sales and expenses for last month follow Total S 632,000 442,488 Par Unit 5 48 28 Sales
Menlo Company distributes a single product. The company's sales and expenses for last month follow Total S 632,000 442,488 Par Unit 5 48 28 Sales Variable expenses Contribution margin Fixed expenses Net operating income 189,608 152,488 $ 37,288 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 $69,600? 3-b. Verlfy your answer by prepaing a contributlon format Income statement at the target sales level. 4. Refer to the original clata. Compute the company's margin of safety in both collar and percentage terms. 5. What is the company's CM ratio? If sales increase by $35,000 per month and there is no change in tixed expenses, by how much would you expect monthly net operating income to increase
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