Northwood company manufactures and sells basketballs. The company's contribution format income statement for the most recent year is given below. Sales (30,000 units) Variable Expenses Contribution Margin Fixed expenses Net Operating Income $60 Total $1,800,000 1.500.000 300,000 240000 $60.000 Percent of Per unit Sales 100% 50 2 $10 Management is anxious to increase the company's profit and has asked for an analysis of a number of items Required 1. Compute the company's Contribution Margin (CM) and the variable expense ratio 2. Compute the company's break-even point in both units and dollars 3. Assume that sales increase by $400,000 next year. If cost behavior patterns remain unchanged by how much the company's net operating income increase? Use the CM ratio to compute your answer 4 Refer to the original data Assume that the next year management wants the company to earn a profit of at least $90,000. How many units will have to be sold to meet this target pront