What is the month break-even point in units

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Reference no: EM13170335

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

 

1) What is the month break-even point in units sold and in sales dollars?

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

3) How many units would have to be sold each month to earn a target profit of $90,000? Use the formula method. Verify your answer by preparing contribution format income statement at the target sales level.

Reference no: EM13170335

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