Harris Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.

Sales $(5,000$ units$)..............$ $ $300,000$

Variable expenses................ $240,000$

Contribution margin............ $60,000$

Fixed expenses..................... $58,800$

Net operating income......... $ $1,200$

Required:

What is the contribution margin ratio?

If sales increase to $5,040$ units, what would be the estimated increase in net operating income?

If the selling price increases by $$4$ per unit and the sales volume decreases by $400$ units, what would be the estimated net operating income?

What is the break$-$even point in unit sales?

What is the margin of safety in dollars?

What is the degree of operating leverage?