Menlo Company distributes a single product. The company's sales and expenses for last month follow: Per Unit S 40 28 Total Sales Variable expenses $608,000 425,600 $ 12 Contribution margin Fixed expenses 182,400 146,400 Net operating income $ 36,000 Required 1. What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit sales Break-even point in sales dollars units 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 target profit of $74,400? Use the formula method Units sold 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 0 0 4. 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 .1234 should be entered as 12.34). Dollars Percentage Margin of safety 5. What is the company's CM ratio? If monthly sales increase by $72,000 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