# 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 UnitSales \$1,092,000   \$70Variable expenses 764,400   49Contribution margin 327,600   \$21Fixed expenses 264,600Net 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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