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Pringle Company distributes a single product.

Pringle Company distributes a single product. The company’s sales and expenses for a recent month follow: Pringle Company distributes a single product. The company’s sales and expenses for a recent month follow: p. 216 Required: 1 What is the monthly 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? How many units would have to be sold each month to earn a target profit of $18,000? Use the formula method. Verify your answer 3 by preparing a contribution format income statement at the target level of sales. 4 Refer to the original data. Compute the company’s margin of safety in both dollar and percentage terms. What is the company’s CM ratio? If monthly sales increase by $80,000 and there is no change in fixed expenses, by how much 5 would you expect monthly net operating income to increase?

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