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Wesley Company manufactures and sells a single product. The company's sales and expenses for last quarter follow Sales Less: Variable expenses Total $190,000 133,000 Per

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Wesley Company manufactures and sells a single product. The company's sales and expenses for last quarter follow Sales Less: Variable expenses Total $190,000 133,000 Per Unit $ 10 7 Contribution margin 57,000 $ 3 Less: Fixed expenses 39,000 Net operating income $ 18,000 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- How many units would have to be sold each quarter to earn a target profit of $10,500? a. Units sold to attain target profit 5. What is the company's CM ratio? If quarterly sales increase by $5.700 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

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