Wesley Company manufactures and sells a single product. The company's income statement at sales level of 5,000 units for last quarter follows: Sales Less: Variable expenses Contribution margin Less: Fixed expenses Net operating income Total $400,000 240,000 160,000 140,000 $ 20,000 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-a. How many units would have to be sold each quarter to earn a target profit of $134,400? Use the formula method. Units sold to attain target profit 3-b. Verify your answer by preparing a contribution format income statement at the target level of sales. Total Unit Sales 274,400 n $ 274,400 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, (i.e., 0.123 should be considered as 12.3%).) Units Dollars Percentage Margin of safety 5. What is the company's CM ratio? If quarterly sales decrease by $16,000 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