Question: 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. 3-b. Verify your answer by preparing a contribution format

3-b. Verify your answer by preparing a contribution format income statement at the target sales level. 3-b. Verify your answer by preparing a

3-b. Verify your answer by preparing a contribution format income statement at the target sales level.

4. Refer to part 3 and now assume that the tax rate is 30%. How many units would need to be sold each month to an after-tax target profit of $30,600? (Round the final answer to the nearest whole number.)

5. 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 .1234 should be entered as 12.34).)

6. What is the companys CM ratio? If monthly sales increase by $84,000 and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?

Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Total $ 394,000 212,800 Per Unit $ 20 14 Contribution margin Fixed expenses $ 6 91,200 74,400 Net operating income $ 16,800 Required: 1. What is the monthly break-even point in unit sales and in dollar calor

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