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 $270,000 189,000 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 2,000 $ 180,000 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 S 54,000 3-a. How many units would have to be sold each quarter to earn a target profit of $99,900? Use the formula method. Units sold to attain target profit 5,700 3-b. Verify your answer by preparing a contribution format Income statement at the target level of sales. Total Unit s Sales Less Variable expenses Contribution margin Less Fixed expenses Net operating income 513,000 359 100 153 900 54 000 99.900 0 S 4. Refer to the original data. Compute the company's margin of safety for the quarter in units, in dollars and as a percentage of last quarter's sales. (Round "Percentage answer to 1 decimal place, (i.e., 0.123 should be considered as 12.3%).) Dollars Units 1000$ Percentage 33.3 % Margin of safety 90,000 5. What is the company's CM ratio? If 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.) 28% CM ratio Net operating income S 18,900