Problem II Menlo Company manufactures and sell a single product. The company's sales and expense for last quarter Total per unit Sales $450,000 $ 30 Less variable expenses... 180.000 12 Contribution 270.000 18 Less fixed expenses...... 216,000 Net income.... $ 54,000 Required 1. 2. 3. 4. What is the quarterly break-even point in units and in sales dollars? Without resorting to computation, what is the total contribution margin at the break-even point? How many units would have to be sold each quarter to earn a target net income of $90,000? Use the contribution method. Prove your answer by preparing a contribution income statement at the target level of sales. Refer to the original data. Compute the company's MS in both dollars and percentage items. 5. What is the company's CM ratio? If sales increase by $50,000 per quarter, by how much you expect quarterly net income to increase ?( Do not prepare an income statement, use the CM ratio to compute your answer).