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

Sales (3,000 units) $150,000

Variable expenses 90,000

Contribution margin 60,000

Fixed expenses 48,000

Net operating income $12,000

Required:

a. What is the contribution margin per unit?

b. What is the contribution margin ratio?

c. What is the variable expense ratio?

d. If sales increase to 3,050 units, what would be the estimated increase in net operating income?

e. If sales decline to 2,900 units, what would be the estimated net operating income?