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Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Total $624,000 436,800 Per Unit $ 40
Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Total $624,000 436,800 Per Unit $ 40 28 Contribution margin Fixed expenses $ 12 187200 150,000 Net operating income $ 37,200 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 mergin at the break- even point? Total contribution margin 3. How many units would have to be sold each month to earn a target profit of a. $58,800? Use the formula method. Units sald 3- Verify your answer by preparing a contribution format Income statement at the target b. sales level. Menlo Company Contribution Income Statement Total Per unit
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