Problem 4-22 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio (LO5-1, LO5-3, LO5-5, LO5-6, LO5-7) + Menlo Company distributes a single product. The company's sales and expenses for last month follow: ints Sales Variable expenses Total $ 636,000 445,200 Per Unit $ 40 28 Skipped $ 12 Contribution margin Fixed expenses 190, 800 145,200 Net operating income $ 45, 600 eBook Ask Required: 1. What is the monthly break-even point in unit sales and in dollar sales? Print units Break-even point in unit sales Break-even point in sales dollars 2. Without resorting to computations, what is the total contribution margin at the break-even point? Total cilutenrirja 3-a. How many units would have to be sold each month to earn a target profit of $72,000? Use the formula method. Units sold points Skipped 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. eBook Menlo Company Contribution Income Statement Total Per unit 0 $ 0 Print $ 0 Scanned with CamScanner 4. Refer to part 3 and now assume that the tax rate is 30%. How many units would need to be sold each month to an after-tax target profit of $72,000? (Round the final answer to the nearest whole number.) Unit sales required units points Skipped eBook 5. 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 (i.e 1234 should be entered as 12.34).) Dollars Ask Percentage Margin of safety Print 6. 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? Sca. CM ratio Car Net operating income increases by