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

Sales (8,000 units) $480,000

Variable expenses 336,000Contribution margin 144,000

Fixed expenses 142,200

Net operating income $1,800

Required:

a. What is the contribution margin per unit?

b. What is the variable expense ratio?

c. If sales decline to 7,900 units, what would be the estimated net operating income?

d. If the variable cost per unit increases by $5, spending on advertising increases by $2,000, and unit sales increase by 3,400 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 $50,400.