Question 320 Marks The following is Alsatia Corporation's contribution format income statement for last month Sales Less: variable expenses Contribution margin Less: fixed expenses Operating income $1,400.000 900.000 500,000 300.000 $200,000 The company has no beginning or ending inventories and produced and sold 10,000 units during the month Required: a) What is the company's contribution margin ratio? - 2 Marks b) What is the company's break-even in units? - 4 Marks c) If sales increase by 100 units, by how much should operating income increase? - 4 Marks d) How many units would the company have to sell to attain target operating income of $225,000? 4 Marks e) What is the company's margin of safety in dollars! 3 Marks f) What is the company's degree of operating leverage? 3 Marks