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CoursHeroTranscribedText: Wesley Com pany manufactures and sells a single product The company's income statement at sales level of 25,000 units for last quarter follows: Total Sales $1 , 3213, Bee Less: Variable expenses 3,214,698 Contribution margin 546,690 Less: Fixed emenses 399,396 Net operating income $ 14?,089 I; Required: 1. What is the monthly break-even point in units sold and in sales dollars? {Round your intermediate calcuiations and nal answers to the nearest whole number.) Breakeven point in unils said Break-even point in sales dollars 2. Without resorting to computations, calculate the total contribution margin at the breakeven point for the quarter. 3-a. How many units would have to be sold each quarter to earn a target prot of $81,900? Use the formula method. 3-b. Verify your answer by preparing a contribution format income statement at the target level of sales. Total Unit Sales 180,900 0 480,900 4. Refer to the original data. Compute the company's margin of safety for the quarter in units, in dollars and as a percentage of last quarter's sales. (Round "Percentage" answer to 1 decimal place, (i.e., 0.123 should be considered as 12.3%).) Units Dollars Percentage Margin of safety % 5. What is the company's CM ratio? If quarterly sales decrease by $54,600 and there is no change in fixed expenses, what would you expect the quarter's net operating income to be? (Do not prepare an income statement; use the CM ratio to compute your answer.) CM ratio % Net operating income

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