Ehrlich Company prepared the following contribution format income statement based on a sales volume of 1,000 units.

Sales	$	20,000
Variable expenses		12,000
Contribution margin		8,000
Fixed expenses		6,000
Net operating income	$	2,000

Required:

1.	What is the contribution margin per unit?

2.	What is the contribution margin ratio?

3.	What is the break-even point in unit sales?

4.	What is the break-even point in dollar sales?

5.	How many units must be sold to achieve a target profit of $5,000?

6. What is the margin of safety in dollars?

7.	What is the degree of operating leverage?

8. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales?

9. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?