Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units):

Sales: $20,000

Variable Expense 12,000

Contribution Margin: 8,000

Fixed Expenses 6,000

Net Operating income $2,000

a) What is the contribution margin ratio?

b) If sales increase to 1,001 units, what would be the increase in the net operating income?

c) What is the break even point in unit sales?

d) What is the break even point in dollar sales?

e) How many units must be sold to achieve a target profit of $5,000?