Company Z only makes one product and has budgeted sales of $1,217,268 for the upcoming year. The sales volume at this level is 7,514 units. Budgeted total variable costs and expenses are $811,512 and budgeted fixed costs and expenses are $245,000. All of this results in total budgeted operating income of $160,756.

Answer the following 10 questions:

1. How much is Z Company's Variable Cost/Expense Per Unit? (SHOW YOUR WORK)

2. How much is Z Company's Contribution Margin Per Unit? (SHOW YOUR WORK)

3. How much is Z Company's Contribution Margin Ratio? (SHOW YOUR WORK)

4. Using the Contribution Margin Ratio method, how much is Z Company's Breakeven in Sales DOLLARS? (SHOW YOUR WORK)

5. How much is Z Company's Margin of Safety in DOLLARS? (SHOW YOUR WORK)

6. Using the Contribution Margin Per Unit method, how much is Z Company's Breakeven in UNITS? (SHOW YOUR WORK)

7. How much is Z Company's Margin of Safety in UNITS? (SHOW YOUR WORK)

8. Calculate the Degree of Operating Leverage, and then use it to determine what PERCENT INCREASE in Operating Income would be expected to result if Sales were actually 10 percent higher than originally budgeted? (SHOW YOUR WORK)

9. How many UNITS would Z Company have to sell to generate an Operating Income of $192,400?

10. Go back to the information in the original problem - By how much would Z Company's Operating INCOME INCREASE if Budgeted Sales for the upcoming year were $66,000 higher than given in the original problem?