Question: Please Help answer the following question, thanks in advance EXERCISE 518_BneakEven and Target Prot Analysis; Margin of Safety; CM Ratio [L0], L03, L05, L06, L07]

Please Help answer the following question, thanks in advance

Please Help answer the following question, thanks in advance EXERCISE 518_BneakEven and

EXERCISE 518_BneakEven and Target Prot Analysis; Margin of Safety; CM Ratio [L0], L03, L05, L06, L07] Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales ......................... $450,000 $30 Variable eupensas ............... 180,000 3 Delirium maryn .............. 270,000 018 Fixed expenses ................. 216,000 Net operating hem ............. $ 54,000 Required: 1. 2. 3. What is the monthly break-even point in unit sales and in dollar sales? Without resorting to computations, what is the total contribution margin at the break-even point? How many units would have to be sold each month to earn a target prot of $90,000? Use the formula method. Verify your answer by preparing a contribution format income statement at the target sales level. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. What is the company's CM ratio? If sales increase by $50,000 per month and there is no change in xed expenses, by how much would you expect monthly net operating income to increase? Compute the company's degree of operating leverage. Using the degree of operating leverage, estimate the impact on net operating income of a 10% increase in sales

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