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Menlo Company distributes a single product. The company's sales and expenses for last month follow Sales Variable expenses Contribution margin Fixed expenses Net operating Income Total $ 600,000 420,000 180,000 145,200 $ 34,800 Per Unit $40 28 $ 12 Required: 1 What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3. How many units would have to be sold each month to attain a target profit of $63.600? 3.5 Verify your answer by preparing a contribution format income statement of the target sales level 4 Refer to the original dato Compute the company's margin of safety in both dollar and percentage terms 5. What is the company's CM ratio? if sales increase by $59,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Reg1 Reg 2 Req 3A Reg 38 Req 4 Reqs What is the monthly break-even point in unit sales and in dollar sales? units Break-even point in unit sales Break-even point in dollar sales Rent Req 2 > Fixed expenses Net operating income 145,200 $ 34,800 Required: 1 What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each month to attain a target profit of $63,600? 3.b. Verify your answer by preparing a contribution format income statement at the target sales level 4. Refer to the original data Compute the company's margin of safety in both dollar and percentage terms. 5. What is the company's CM ratio? If sales increase by $59.000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Reg 3A Reg 38 Reg 4 Reg 5 without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin Total 3600,000 420,000 180,000 145,200 5 34,300 Per Unit 140 28 12 Sales Variable expenses Contribution margin and expenses Net operating income Required: What is the monthly break even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break oven point? 3a. How many units would have to be sold each month to attain a target profit of $63.600? 3-6. Verify your answer by preparing a contribution format income statement at the target sales level 4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms 5. What is the company's CM ratio? if sales increase by $59.000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Reg2 Reg Reg JA Reg38 Res Reg How many units would have to be sold each month to attain a target profit of $63,6007 Juales needed to an toget profit ( Req 2 Reg 38 > Reg 1 Rea 2 Req 3A Reg 38 Reg4 Reg 5 Verify your answer by preparing a contribution format income statement at the target sales level. Menlo Company Contribution Income Statement Total Per Unit Req 1 Reg 2 Req Reg 38 Reg 4 Req5 Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. (Round your percentage answer to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) Dollars Percentage Margin of safety % Reg 1 Req 2 Req 3A Req 3B Req 4 Reg 5 What is the company's CM ratio? If sales increase by $59,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? CM ratio % Net operating income increases by

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