Omar Company prepared the following contribution format income statement based on 100,000 units of sales.

Sales$3,000,000

Variable expenses.1,800,000

Contribution margin.1,200,000

Fixed expenses..900,000

Net operating income 300,000

Required:

Using the information given above answer the questions on page 226 of the text.

The following questions 4, 5, 6, 10, & 14 are changed to read as follows:

• 4. If sales increase by 1,000 units what would be the net operating income?
• 5. If sales decrease by 1,000 units what would be the net operating income?
• 6. If the selling price increases by $2 per unit and the sales volume decreases by 10,000 units what would be the net operating income?
• 10. How many units must be sold to achieve a net operating income of $350,000?
• 14. Use the information given in the income statement above to answer this question.