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Question # 8. (20 minutes) Marmidan Corporation distributes a single product. The company's sales and expenses for last month were as follows: Sales Variable expenses Contribution margin Fixed expenses $ 450,000 180,000 270,000 216,000 $ 54,000 Operating income Required: a)Calculate the monthly breakeven point in both units. b)Calculate the number of units that must be sold each month to generate a profit of $ 90,000 ? c)Calculate the company's margin of safety in dollars ? d)Calculate the company's contribution margin ratio. Use the contribution margin ratio to calculate the effect on operating income if sales increase by $ 50,000 per month and there is no change in fixed expense ? Question # 8. (20 minutes) Marmidan Corporation distributes a single product. The company's sales and expenses for last month were as follows: Sales Variable expenses Contribution margin Fixed expenses $ 450,000 180,000 270,000 216,000 $ 54,000 Operating income Required: a)Calculate the monthly breakeven point in both units. b)Calculate the number of units that must be sold each month to generate a profit of $ 90,000 ? c)Calculate the company's margin of safety in dollars ? d)Calculate the company's contribution margin ratio. Use the contribution margin ratio to calculate the effect on operating income if sales increase by $ 50,000 per month and there is no change in fixed expense

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