Hasanah Corporations most recent contribution format income statement is shown below:

	Total (SR)	Per unit (SR)
Sales (30,000 units)	150,000	5
Variable expenses	90,000	3
Contribution margin	60,000	2
Fixed expenses	50,000
Net operating income	10,000

1. What is the corporations contribution margin (CM) ratio?

1. To calculate the net operating income if the number of units sold increases by 15%.
2. To calculate the net operating income when selling price decreases by SR1 per unit, and the number of units sold increases by 20%.
3. The management is considering to increase the selling price by SR1 per unit, fixed expenses increase by SR10,000, and the number of units sold decreases by 5%. Should the management do this? If yes, why?