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Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Contribution margin Pixed expenses Net operating income

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Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Contribution margin Pixed expenses Net operating income Total $ 624,000 436,800 187,200 152,400 $ 34,800 Per Unit $ 40 28 $ 12 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 $66,000? 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 company's CM ratio? If the company can sell more units thereby increasing sales by $75,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? rences Reg 1 Reg 2 Req 3A Reg 38 Reg 4 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 Req 1 Reg 2 Reg 3A Reg 38 Reg 4 Reg 5 Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin Req1 Reg 2 Req 3A Req 38 Reg 4 Reg 5 How many units would have to be sold each month to attain a target profit of $66,000? Units sales needed to attain target profit Req 1 Req 2 Req 3A Reg 38 Req 4 Reqs Verify your answer by preparing a contribution format income statement at the target sales level. Menlo Company Contribution Income Statement Total Per Unit Req 1 Reg 2 Req 3A Req 3B Req 4 Reg 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 (le. 0.1234 should be entered as 12.34).) Dollars Percentage Margin of safety Req 1 Req 2 Reg 3A Reg 38 Reg 4 Reg 5 What is the company's CM ratlo? If the company can sell more units thereby increasing sales by $75,000 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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