Required:

1) determine the compay's unit contribution margin.

2) calculate the company's break-even in units usinf the formula method.

3) determine the break-even dollars using the equiation method.

4) how many units would the company have to sell to attain the target profit of $180,000

5) calculate the company's margin safety in dollars.

6) assuming a 5% increase in sales, what would be the new net operating income? (use the degree of operating leverage)

The following is Addison Corporation's contribution format income statement for last month. The company has no beginning or ending inventories. A total of 10,000 units were produced and sold last month. The following is last month's contribution format income statement: Sales (10,000 units)............ Variable expenses .............. Contribution margin............ Fixed expenses ................. Net operating income ......... $1,200,000 800.000 400,000 240.000 $ 160,000 19 - 120 luc=80 Icm: 40V the P= cm Units X Q. - FC HOQ- 240,000 1. Q=240,000=610