11 Part Question

Required information [The following information applies to the questions displayed below.) $ Income Statement Sales (1,000 units) Variable expenses Contribution margin Fixed expenses Net operating income 80,000 52,000 28,000 21,840 6,160 $ Required: 1. What is the contribution margin per unit? (Round your answer to 2 decimal places.) Contribution margin per unit 2. What is the contribution margin ratio? Contribution margin ratio % 4. Assuming the increase is within the relevant range, if sales increase to 1,001 units, what is the increase in net operating income? (Round your answer to 2 decimal places.) Increase in net operating income 6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? The new sales volume is within the relevant range. Net operating income 7. If the variable cost per unit increases by $1, spending on advertising increases by $1,700, and unit sales increase by 240 units, what would be the net operating income? The new sales volume is within the relevant range. Net operating income 8. What is the break-even point in unit sales? Break-even point units 9. What is the break-even point in dollar sales? Break-even point 10. Assuming the increase is within the relevant range, how many units must be sold to achieve a target profit of $16,800? Number of units 11. What is the margin of safety in dollars? What is the margin of safety percentage? Margin of safety in dollars Margin of safety percentage 12. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? The increase in sales is within the relevant range. (Round your intermediate calculations and final answer to 2 decimal places.) Increase in net operating income