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 expenses12,000

Contribution margin8,000

Fixed expenses6,000

Net operating income$2,000

Required:

( Answer each question independently and always refer to the original data unless instructed otherwise.)

1. What is the contribution margin per unit?

2. What is the contribution margin ratio?

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

6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?

8. What is the break-even point in unit sales?

9. What is the break-even point in dollar sales?

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

11. What is the margin of safety in dollars? What is the margin of safety percentage?

12. What is the degree of operating leverage?