Menlo Company manufactures and sells a single product. The company's sales and expenses for the last quarter follow:

	Total		Per unit
Sales	450,000		30
Less variable expenses	180,000		12
Contribution margin	270,000		18
Less fixed expenses	216,000
Profit	54,000

Required:
1.	What is the quarterly break-even point in units sold?
	What is the quarterly break-even point in sales pounds?

2.	Without resorting to computations, what is the total contribution margin at the break-even point?

3.	How many units would have to be sold each quarter to earn a target profit of 90,000? Use the unit contribution method. (Input all amounts as a positive values.)

	Verify your answer by preparing a contribution statement of profit or loss at the target level of sales.

4.	Refer to the original data. Compute the company's margin of safety in pound term.
	Refer to the original data. Compute the company's margin of safety in percentage term.

5.	What is the company's CM ratio? (Round your answer to the nearest whole number.)
	If sales increase by 50,000 per quarter and there is no change in fixed expenses, by how much would you expect quarterly profit to increase? (Do not prepare a statement of profit or loss; use the CM ratio to compute your answer.) (Round your answer to the nearest whole number.)