Question - 1: Simens Company manufactures and sells telephone answering questions. The company's contribution format income statement for the most recent years are given below: PER UNIT $30 12 Sales Less: Variable expense Contribution margin Less: Fixed expense Net Operating Income TOTAL $450,000 180,000 270,000 216,000 $54,000 $18 Requirements: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. What is the total contribution margin at break even point without computation? 3. How many units would have to be sold each month to attain a target profit of $90,000? Verify your answer by preparing a contribution format income statement at the target sales level. 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 $50,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase