Exercise 6-18 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio [LO6-1, LO6-3, LO6-5, LO6-6,...

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Exercise 6-18 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio [LO6-1, LO6-3, LO6-5, LO6-6, LO6-7] Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales Variable expenses Contribution margin Fixed expenses $ 620,000 434,000 128 186,900 $12 146.490 Net operating income 39,600 Required: 1. What is the monthly break-even point in unit sales and in dolar 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 $64.800? 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 $92,000 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. Reg 1 Rec 2 Reg 3A Req 3B Reg 4 Reg 5 What is the monthly break-even point in unit sales and in dollar sales? Break-ever point in unit sales Unite Break-even point in dollar se es Fleq 2 ) Exercise 6-18 Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio [LO6-1, LO6-3, LO6-5, LO6-6, LO6-7] Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales Variable expenses Contribution margin Fixed expenses $ 620,000 434,000 128 186,900 $12 146.490 Net operating income 39,600 Required: 1. What is the monthly break-even point in unit sales and in dolar 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 $64.800? 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 $92,000 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. Reg 1 Rec 2 Reg 3A Req 3B Reg 4 Reg 5 What is the monthly break-even point in unit sales and in dollar sales? Break-ever point in unit sales Unite Break-even point in dollar se es Fleq 2 )