Next Page Page 4 of 9 (6 Questions, 10 Marks) The following is Thomas Ltd.'s contribution margin income statement for 2019. Sales $ 2,000,000 Variable expenses 1,600,000 Contribution margin 400,000 Fixed expenses 200,000 Operating income $ 200,000 Thomas Ltd. has no beginning or ending inventories, and produced and sold 4,000 units during the year. Question 17 (1 point) Saved What is the company's contribution margin ratio? 0.2 Page 4: What is the company's breakeven sales in units? 17 18 19 2500 A/ > 20 21 22 Question 19 (2 points) Saved If sales increase by 200 units, by how much should operating income increase? 200 A Page 5: 23 24 25 Question 20 (2 points) Saved 26 27 28 How many units would the company have to sell to attain target operating income of $250,000? 280 Page 6: Question 21 (2 points) Saved 29 30 31 What is the company's margin of safety in dollars? 697500 Page 4: Question 21 (2 points) Saved 17 18 19 What is the company's margin of safety in dollars? 697500 A 20 21 22 > Question 22 (1 point) Saved Page 5: What is the company's degree of operating leverage? 2 A 23 24 25 Next Page Page 4 of 9 26 27 28 Page 6: Submit Quiz 22 of 49 questions saved 29 30 31