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Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales $ 636,000 $ 40 Variable expenses

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Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales $ 636,000 $ 40 Variable expenses 445, 200 28 Contribution margin 190,800 146,400 $ 12 Fixed expenses Net operating income $ 44,400 Required: 1. 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 sales dollars 2. Without resorting to computations, what is the total contribution margin at the break-even point? fion ma 1. What is the monthly break-even point in unit sales and in dollar sales? n 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 taiget profit of $64,800? Use the formula method, Units sold 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. Menlo Company Contribution Income Statement Total Per unit 4. Refer to part 3 and now assume that the tax rate is 30%. How many units would need to be sold each month to an after-tax target profit of $64,800? (Round the final answer to the nearest whole number.) units Unit sales required Subm Unit sales required units 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 (i.e .1234 should be entered as 12.34).) Dollars Percentage Margin of safety 6. What is the company's CM ratio? If monthly sales increase by $54,000 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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