Menlo Company distributes a single product The companys sales and expenses for last month follow Total Per Unit Sales $ 632,000 $ 40 Variable expenses 442,400 28 Contribution margin 189,600 $ 12 Fixed expenses 154,800 Net operating income $ 34,800 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 $61,200 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 companys CM ratio If sales increase by $91,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase What is the monthly break even point in unit sales and in dollar sales What is the monthly break even point in unit sales and in dollar sales Break even point in unit sales units Break even point in dollar sales Without resorting to computations, what is the total contribution margin at the break even point Total contribution margin How many units would have to be sold each month to attain a target profit of $61,200 Units sales needed to attain target profit Verify your answer by preparing a contribution format income statement at the target sales level Menlo Company Contribution Income Statement Total Per Unit 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 (i e 0 1234 should be entered as 12 34) ) Dollars Percentage Margin of safety What is the companys CM ratio If sales increase by $91,000 per month and there 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

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Menlo Company distributes a single product. The companys sales and expenses for last month follow: Total Per Unit Sales $ 632,000 $ 40 Variable expenses

Menlo Company distributes a single product. The companys sales and expenses for last month follow:

	Total		Per Unit
Sales	$	632,000	$	40
Variable expenses		442,400		28
Contribution margin		189,600	$	12
Fixed expenses		154,800
Net operating income	$	34,800

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 $61,200?

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 companys CM ratio? If sales increase by $91,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?

What is the monthly break-even point in unit sales and in dollar sales?


Break-even point in unit sales		units
Break-even point in dollar sales

Without resorting to computations, what is the total contribution margin at the break-even point?

Total contribution margin

How many units would have to be sold each month to attain a target profit of $61,200?

Units sales needed to attain target profit

Verify your answer by preparing a contribution format income statement at the target sales level.

Menlo Company
Contribution Income Statement
	Total	Per Unit

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 (i.e. 0.1234 should be entered as 12.34).)

	Dollars	Percentage
Margin of safety			%

What is the companys CM ratio? If sales increase by $91,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?