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

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3-b. Verify your answer by preparing a contribution format income statement at the target sales level. Menlo Company Contribution Income Statement Total Margin of safety Dollars $ Percentage 4. 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). CM ratio Net operating income increases by % 0 $ 0 Per unit 0 5. What is the company's CM ratio? If monthly sales increase by $98,000 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 Contribution margin Fixed expenses Net operating income Total $640,000 448,000 192,000 153,600 Total contribution margin $ 38,400 Break-even point in unit sales Break-even point in sales dollars. Required: 1. What is the monthly break-even point in unit sales and in dollar sales? Units sold Per Unit $ 40 28 $ 12 2. Without resorting to computations, what is the total contribution margin at the break-even point? units 3-a. How many units would have to be sold each month to earn a target profit of $52,800? Use the formula method. 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. Menlo Company Contribution Income Statement Total Margin of safety Dollars $ Percentage 4. 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). CM ratio Net operating income increases by % 0 $ 0 Per unit 0 5. What is the company's CM ratio? If monthly sales increase by $98,000 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 Contribution margin Fixed expenses Net operating income Total $640,000 448,000 192,000 153,600 Total contribution margin $ 38,400 Break-even point in unit sales Break-even point in sales dollars. Required: 1. What is the monthly break-even point in unit sales and in dollar sales? Units sold Per Unit $ 40 28 $ 12 2. Without resorting to computations, what is the total contribution margin at the break-even point? units 3-a. How many units would have to be sold each month to earn a target profit of $52,800? Use the formula method.

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1 Breakeven point in unit salesFixed costContribution per unit 15360012 12800 units Breakeven point ... View the full answer