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Menlo company distributes a single product

15/10/2021 Client: muhammad11 Deadline: 2 Day

Menlo Company Distributes A Single Product. The Compan

E4-12 Menlo Company distributes a single product. The company's sales and expenses for last month follow:

Total Per Unit

Sales $1,092,000 $70

Variable expenses 764,400 49

Contribution margin 327,600 $21

Fixed expenses 264,600

Net operating income $63,000

Requirement1:
What is the monthly break-even point in units sold and in sales dollars? (Omit the "$" sign in your response.)

Requirement 2:

Without resorting to computations, what is the total contribution margin at the break-even point? (Omit the "$" sign in your response.)

Requirement 3:

How many units would have to be sold each month to earn a target profit of $96,600? Use the formula method.

Units sold units

Requirement 4:

Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. (Round your percentage value to 2 decimal places. Omit the "$" and "%" signs in your response.)

Dollars Percentage Margin of safety $ %

Requirement 5: What is the company's CM ratio? If sales increase by $91,000 and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?(Omit the "$" and "%" signs in your response.)

CM ratio %

Increased net operating income $

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