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Wesley Company manufactures and sells a single product . The company's income statement at sales level of 3,000 units for last quarter follows: Sales Less:

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Wesley Company manufactures and sells a single product . The company's income statement at sales level of 3,000 units for last quarter follows: Sales Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income Total $270,000 189,600 81,000 54,000 $ 27,000 Required: 1. What is the monthly break-even point in units sold and in sales dollars? (Round your intermediate calculations and final answers to the nearest whole number.) Break-even Point Break even point in units sold Break even point in sales dollars 2. Without resorting to computations, calculate the total contribution margin at the break-even point for the quarter. Total contribution margin 3-0. How many units would have to be sold each quarter to earn a target profit of $99.900? Use the formula method. Units sold to attain targot profit 3-b. Verify your answer by preparing a contribution format income statement at the target level of sales. Total Unit Sales 153,900 4. Refer to the original data. Compute the company's margin of safety for the quarter in units, in dollars and as a percentage of last quarter's sales. (Round "Percentage" answer to 1 decimal place, (l.e., 0.123 should be considered as 12.3%)) Dollars Percentage Margin of safety 5. What is the company's CM ratio of quarterly sales decrease by $8.100 and there is no change in fixed expenses, what would you expect the quarter's net operating income to be? (Do not prepare an income statement use the CM ratio to compute your answer) CM ratio Net operating income

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