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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 Pixed expenses Net operating income Total $ 450,000 180,000 270,000 216,000 $ 54,000 Per Unit $ 30 12 $ 18 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 $90,000? 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 $50,000 per month and there is no change in fixed expenses, by how muc would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req 3A Reg 38 Reg 4 Reg 5 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 Req2) 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 po 3-a. How many units would have to be sold each month to attain a target profit of $90,000? 3-b. Verify your answer by preparing a contribution format income statement at the target sales 4. Refer to the original data. Compute the company's margin of safety in both dollar and percer 5. What is the company's CM ratio? If sales increase by $50,000 per month and there is no cha would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req Req 3B Req 4 Reg 5 Without resorting to computations, what is the total contribution margin at the break-even point? Total contribution margin Income to increase? Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req 3A Req 3B Req 4 Req 5 Verify your answer by preparing a contribution format Income statement at the target sales level. Menlo Company Contribution Income Statement Total Per unit + in a target profit of $90,0 your answer by preparing a contribution format income statement at the targ 4. Refer to the original data. Compute the company's margin of safety in both dollar and 5. What is the company's CM ratio? If sales increase by $50,000 per month and there is would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Req 4 Req 5 Refer to the original data. Compute the company's margin of safety in both dollar and perc Dollars Percentage Margin of safety company's CM ratio? If sales increase by $50,000 per month and the would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 3B Req 4 Req 5 What is the company's CM ratio? If sales increase by $50,000 per month and there is much would you expect monthly net operating income to increase? CM ratio % Net operating income increases by

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