Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales.... Variable expenses Contribution margin Fixed expenses.. Net operating income. Total $450,000 180,000 270,000 216,000 $ 54,000 Per Unit $30 12 $18 Required: 1. What is the monthly break-even point in units sold and in sales dollars? 2. 3. Without resorting to computations, what is the total contribution margin at the break-even point? How many units would have to be sold each month to earn a target profit of $90,000? Use the formula method. 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 percent- age terms. What is the company's CM ratio? If sales increase by $50,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? 5.