1. What is the contribution margin per unit 2. What is the contribution margin ration 3. what is the variable expense ration 4. If sales increase 1,001 units what be the increase in net operating income 5. If sales decrease 900 units what would be the net operating income 6 If the selling price increases by $2 dollars per unt and the sales volume decreases by 100 units what would be the net operating income 7 If the variable cost per unit increases by $1 spending on advertising increases by $1,500 and unit sales increase by 250 units, what would be the net operating income 8 What is the break even point of sale 9what is the break even point in dollar sales 10 How many units must be sold to achieve a target profit of $5,000 11 What is the margin of safety in dollars? What is the margin of safety percentage 12 What is the degree of operating leverage 13 Using the degree of operating leverage, what ist he estimated percent increase in net operating incoe of a 5% increase in sales 14 Assume the amounts of the company total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expensed are 6,000 dollars and the total fixed expenses are $12,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage 15 Using the degree of operating leverage that you computed in the previous question, what is the estimated percent increase in net operating income of 5% increase in sales

% Sales Variable expenses Contribution Margin Fixed Expenses Net operating income 1. $20,000.00 $12,000.00 $8,000.00 $6,000.00 $2,000.00 Total contribution margin Total units sold Contribution margin per unit 2. units per unit Total variable expenses Total sales Variable expense ratio 4 per unit $ $20.00 $12.00 $8.00 Total contribution margin Total sales Contribution margin ratio 3 100% 60% 40% Contribution margin per unit Increase in unit sales Increase in net operating income 5. per unit unit Units Per unit Units Per unit Sales Variable expenses Contribution margin Fixed expenses Net operating income 6. Sales Variable expenses Contribution margin Fixed expenses Net operating income 7 Sales Variable expenses Contribution margin Fixed expenses Net operating income 8 Profit = = = = = = Unit CM X Q - Fixed expenses units 9. Profit = = = = = CM ration X Sales - Fixed Expenses 10 Profit = = = = = = Unit CM X Q - Fixed expenses 11 Sales Break-even sales at units Margin of safety (in dollars) Margin of safety (in dollars) Sales Margin of safety percentage 12 Contribution margin Net operating income Degree of operating leverage 13 Degree of operating leverage % increase in sales % increase in net operating income 14 Contribution margin Net operating income Degree of operating leverage 15 Degree of operating leverage % increase in sales % increase in net operating income Units Units sold 1000