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To Per Unit $ 312,000 20 Sales Variable expenses Contribution margin Pixed expenses Net operating income 218,400 14 93,600 72,600 $ 21,000 Required 1. What
To Per Unit $ 312,000 20 Sales Variable expenses Contribution margin Pixed expenses Net operating income 218,400 14 93,600 72,600 $ 21,000 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 $31.200? 3-b. 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. Wha would you expect monthly net operating income to increase? t is the company's CM ratio? If sales increase by $95,000 per month and there is no change in fixed expenses, by how much Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 38 Req 4 Req 5 Verify your answer by preparing a contribution format income statement at the target sales level Menlo Company Contribution Income Statement Per Total Sales Variable expenses Contribution margin Fixed expenses Net operating income opeted so tar. it does n Total Per Unit 312,000 20 Sales Variable expenses Contribution margin Fixed expenses Net operating income 218.400 14 93,6006 s 21,000 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 $31,200? 3-b. Verify your answer by preparing a 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 $95.000 per month would you expect monthly net operating income to increase? contribution format income statement at the target sales level. 3 Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Req 4 Req 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 (lie. 0.1234 should be entered as 12.34)) Dollars Percenta Margin of safe Req 38 Req 5>
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