$1.)$ Sattler Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.

Sales $(7,000$ units$)$ $$490,000$

Variable expenses $280,000$

Contribution margin $210,000$

Fixed expenses $205,500$

Net operating income $$4,500$

Required:

a$.$ What is the contribution margin per unit?

b$.$ What is the variable expense ratio?

c$.$ If sales decline to $6,900$ units, what would be the estimated net operating income?

d$.$ If the variable cost per unit increases by $$5,$ spending on advertising increases by $$3,000,$ and unit sales increase by $4,100$ units, what would be the estimated net operating income?

e$.$ What is the break$-$even point in dollar sales?

f$.$ Estimate how many units must be sold to achieve a target profit of $$55,500.$

g$.$ What is the margin of safety percentage?

h$.$ Using the degree of operating leverage, what is the estimated percent increase in net operating income of a $20\%$ increase in sales?