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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 Fixed expenses Net operating income
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 $ 600,000 420,000 180,000 151,200 $ 28,800 Per Unit $ 40 28 $ 12 How many units would have to be sold each month to attain a target profit of $69,600? 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 0 $ What is the company's CM ratio? If sales increase by $69,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? 30 % CM ratio Net operating income increases by
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