1. ABC company prepared the following contribution format income statement based on a sales volume of 1,000 unites:

Sales	$25,000
Variable expenses	$15,000
Contribution margin	$10,000
Fixed expenses	$6,000
Net operating income	$4,000

a. Calculate contribution margin per unit, contribution margin ratio, and variable expense ratio. (5 points)

b. What would be the percentage increase in net operating income if sales volume increases by 50%? (5 points)

c. If the selling price increases by 10% and sales volume decreases by 10%, what would be the net operating income? (5 points)

d. What would be the break even point in unit sales if variable expenses per unit increases by 8% and fixed expenses increase by 10%? (5 points)

e. What is the margin of safety percentage? At what percentage of sale volume decrease the company would experience zero net operating income? (5 points)