question archive Menlo Company distributes a single product

Menlo Company distributes a single product

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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

 

Requirement 1:
What is the monthly break-even point in units sold and in sales dollars? (Omit the "$" sign in your response.)
   
  Monthly break-even point units
  Sales $          

Requirement 2:
Without resorting to computations, what is the total contribution margin at the break-even point? (Omit the "$" sign in your response.)
  Total contribution margin at the break-even point $
Requirement 3:
How many units would have to be sold each month to earn a target profit of $90,000? Use the formula method.
  Units sold units
Requirement 4:
Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. (Omit the "$" and "%" signs in your response.)
  Dollars Percentage   
  Margin of safety $ %

Requirement 5:

What is the company's CM ratio? If sales increase by $50,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? (Omit the "$" and "%" signs in your response.)

   
  CM ratio %
  Increased net operating income $     

I am getting req 4 wrong many times and it is probably bc even though I got req1-3 correct, I was just within range of the acceptable answer therefore req 4 which is dependent on the previous 3 req is wrong. So could some please show me how to do these req?

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