2. What is the contribution margin ratio?

5. 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.

Required information [The following information applies to the questions displayed below.] Income Statement Sales (1,000 units) Variable expenses Contribution margin Fixed expenses 85,000 59,500 25,500 20,400 Net operating income 5,100 Required: 1. What is the contribution margin per unit? (Round your answer to 2 decimal places.) Contribution margin per unit 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