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  3. company distributes a single product. the company'

Company distributes a single product. The company's sales and expenses for last month follow Total...

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Accounting

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Company distributes a single product. The company's sales and expenses for last month follow Total Per Unit Sales Variable expenses $ 450,000$ 30 12 180,000 Contribution margin 270,000 18 216,000 Fixed expenses Net operating income $ 54,000 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? Break-even point in unit sales units Break-even point in sales dollars 2. Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin 3-a. How many units would have to be sold each month to eam a target profit of $90,000? Use the fomula method. Units sold 3-b. Verty your answer by preparing a contribution format income statement at the target sales level ompany Total Per unit Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. 4. DollarsPercentage Margin of safety 5. What is the company's CM ratio? If monthly sales increase by $50,000 and there is no change in ixed expenses, by how much would you expect monthly net operating income to increase? CM ratio

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