Kingston Company is the exclusive distributor for an automotive product that sells for $400 per unit and has a CM ratio of 20%. The companys fixed expenses are $180,000 per year. The company plans to sell 3,000 units this year.

Required:

1. What are the variable expenses per unit -

2. What is the break-even point in unit sales -

3. What amount of dollar sales is required to attain a target profit of $60,000 per year -

4. Using the original data what is the companys Degree of Operating Leverage when the company is selling 30,000 units -

5. If the sales of the company were to increase by 10%, what will be the New Net Operating income -