Wesley Company manufactures and sells a single product. The company's sales and expenses for last quarter follow: Sales Less: Variable expenses Total $450,000 270,000 Per Unit $ 90 54 Contribution margin 180,000 $ 36 Less: Fixed expenses 90,000 Net operating income $ 90,000 Required: 1. What is the quarterly break-even point in units sold and in sales dollars? 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. Total contribution margin 3. How many units would have to be sold each quarter to earn a target profit of $122.400? Use the formula a. method. Units sold to attain target profit 3. Verify your answer by preparing a contribution format income statement at the target level of sales. b. Total Unit Sales 212.400 $ 212,400 4. Refer to the original data. Compute the company's margin of safety for the quarter in both dollar and percentage terms. (Round "Percentage" answer to 1 decimal place, i.e., 0.123 should be considered as 12.3%).) Dollars Percentage Margin of safety 5. What is the company's CM ratio? If quarterly sales increase by $18,000 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.) CM ratio Increased net operating income