Menlo Company manufactures and sells a single product. The company’s revenue and expenses for the last quarter follow: Total Per Unit Revenue £ 450,000 £ 30 Less variable cost 180,000 12 Contribution...

Menlo Company manufactures and sells a single product. The company’s revenue and
expenses for the last quarter follow:

                                         Total            Per Unit
Revenue                      £ 450,000            £ 30
Less variable cost           180,000               12
Contribution margin        270,000           18
Less fixed cost                  216,000
Profit                              £ 54,000

Required:
(a) What is the quarterly break-even point in units sold and in revenue?
(b) Without resorting to computations, what is the total contribution margin at the break-even point?
(c) How many units would have to be sold each quarter to earn a target profit of £90,000? Use the unit contribution method. Verify your answer by preparing a contribution statement of profit or loss at the target level of revenue.