7) Fetterman Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Round to nearest dollar or whole unit

Sales (5,000 units)	$ 300,000
Variable expenses	210,000
Contribution margin	90,000
Fixed expenses	58,800
Net operating income	$ 31,200

Required: a. What is the contribution margin ratio? b. If sales increase to 5,070 units, what would be the estimated increase in net operating income? c. If the selling price increases by $6 per unit and the sales volume decreases by 300 units, what would be the estimated net operating income? d. What is the break-even point in unit sales? e. What is the margin of safety in dollars? f. What is the degree of operating leverage?

g. If sales decrease by 5 % because the advertising budget a (fixed cost) was slashed by $ 15,000, what would be the new net operating income?

h. What is variable expense ratio?

i) What is breakeven point in dollars?

j) Fetterman looking at a target profit - $ 40,000 instead of status quo, how many units must be sold to pull this off?

k) Fetterman looking at a target profit - $ 60,000 instead of status quo, how much in dollar sales to pull this off?

l) what is margin of safety?

m) what is margin of safety percentage?

n) what is estimated increase in NOI if there is an estimated 10 % increase in sales

o) what is degree of operating leverage?