Reference no: EM132611213

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

                                               Total                          Per Unit

Sales                                         $450,000                      $30

Variable expenses                           180,000                       12

Contribution margin                         270,000                     $18

Fixed expenses                               216,000

Net operating income                      $54,000

Question 1: What is the monthly break-even point in units sold and in sales dollars?

Question 2: Without resorting to computations, what is the total contribution margin at the break-even point?

Question 3: How many units would have to be sold each month to earn a target profit of $90,000?

Question 4: Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms