Wesley Company manufactures and sells a single product. The companys sales and expenses for last quarter follow:

Required:

1.	What is the monthly break-even point in units sold and in sales dollars?

2.	Without resorting to computations, calculate the total contribution margin at the break-even point.

3-a.	How many units would have to be sold each quarter to earn a target profit of $18,000? Use the formula method.

3-b.	Verify your answer by preparing a contribution format income statement at the target level of sales.

4.	How many units would have to be sold each quarter to earn a target profit of $18,000? Use the formula method. (Round "Percentage" answer to 1 decimal place, (i.e., 0.123 should be considered as 12.3%).)

5.	What is the companys CM ratio? If quarterly sales increase by $80,000 and there is no change in fixed expenses, by how much would you expect quarterly net operating income to increase? (Do not prepare an income statement; use the CM ratio to compute your answer.)

Sales Less: Variable expenses Total $600,000 420,000 Per Unit $ 40 28 Contribution margin 180,000 $ 12 Less: Fixed expenses 146,520 Net operating income $ 33,480 Break-even point in units sold Break-even point in sales dollars Total contribution margin Units sold to attain target profit Total Unit Sales 164,520 | $ 164,520 Dollars Percentage Margin of safety CM ratio Increased net operating income