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

	Sales (2,000 units)	$120,000
	Variable expenses	72,000
	Contribution margin	48,000
	Fixed expenses	33,600
	Net operating income	$14,400

Required:

If sales decline to 1,900 units, what would be the estimated net operating income?

If the selling price increases by $4 per unit and the sales volume decreases by 200 units, what would be the estimated net operating income?

What is the break-even point in dollar sales?