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only question 3B and 5 Menlo Company distributes a single product. The company's sales and expenses for last month follow Sales Variable expenses Contribution margin

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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 Total $ 604,000 422,800 181,200 154,800 $ 26,400 Per Unit $ 40 28 $ 12 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each month to attain a target profit of $68,400? 3-b. Verify your answer by preparing a contribution format income statement at the target sales lev 4 Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms 5 What is the company's CM ratio? If sales increase by $59,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3A Req 3B Reg 4 Req 5 Req 1 Req 2 Req Reg 3B Reg 4 Reg 5 Verify your answer by preparing a contribution format income statement at the target sales le Menlo Company Contribution Income Statement Total Per Unit Sales $ 728,000 $ 40 Variable expenses 509,600 28 Contribution margin 218,400 $ 12 Fixed expenses 154,800 Net operating income 63,600 $ Ron 3A DOLA would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Req 3B Req 4 Reg 5 WELL What is the company's CM ratio? If sales increase by $59,000 per month 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 30% 22 200 $

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