Hixson Company manufactures and sells one product for $34 per unit. The company maintains no beginning or ending inventories and its relevant range of production is 20,000 units to 30,000 units. When Hixson produces and sells 25,000 units, its unit costs are as follows:

	Amount Per Unit
Direct materials	$	8.00
Direct labor	$	5.00
Variable manufacturing overhead	$	1.00
Fixed manufacturing overhead	$	6.00
Fixed selling expense	$	3.50
Fixed administrative expense	$	2.50
Sales commissions	$	4.00
Variable administrative expense	$	1.00

Required:

5. What total incremental manufacturing cost will Hixson incur if it increases production from 25,000 to 25,001 units? (Round your answer to 2 decimal places.)

6. What is Hixsons contribution margin per unit? What is its contribution margin ratio? (Round "Contribution margin per unit" to 2 decimal places and "Contribution margin ratio" to 1 decimal place.)

7. What is Hixsons break-even point in unit sales? What is its break-even point in dollar sales? (Do not round your intermediate values.)

8. How much will Hixsons net operating income increase if it can grow production and sales from 25,000 units to 26,500 units?

9. What is Hixsons margin of safety at a sales volume of 25,000 units? (Do not round your intermediate values.)

10. What is Hixsons degree of operating leverage at a sales volume of 25,000 units? (Round your answer to 1 decimal places.)