Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total $ 304,000 212,800 Per Unit $ 20 14 Sales Variable expenses Contribution margin Fixed expenses $6 91,200 76,200 Net operating income $ 15,000 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 Sales $ 346,000 $ 20 Variable expenses 240,800 14 Contribution margin 105,200 $ 6 Fixed expenses 76,200 Net operating income $ 29,000 4. Refer to part 3 and now assume that the tax rate is 40%. How many units would need to be sold each month to an after-tax target profit of $35,400? (Round the final answer to the nearest whole number.) 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 $55,000 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