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Required information A company sold a total of 1,000 units for total sales revenue of $30,000. The company incurred total variable expenses of $16,500 and
Required information A company sold a total of 1,000 units for total sales revenue of $30,000. The company incurred total variable expenses of $16,500 and total fixed expenses of $ 7,830. Based on this, the company reported a total contribution margin of $13,500 and net operating income of $ 5,670. Use this information to answer the following questions. Assume that all units are within the relevant range. Calculate the contribution margin ratio. Contribution margin ratio 45% Calculate the net operating income if the selling price increases by $2 per unit and the sales volume decreases by 100 units. Net operating income Calculate the net operating income if the variable cost per unit increases by $1, spending on fixed costs increases by $1,200, and unit sales increase by 140 units. Net operating income Calculate the break-even point in unit sales. Break-even point units Calculate the break-even point in sales dollars. Break-even point Calculate the number of units that must be sold to earn a target profit of $8,100. Number of units Calculate the margin of safety in dollars and the margin of safety percentage. Margin of safety in dollars Margin of safety percentage % Calculate the degree of operating leverage. (Round your answer to 2 decimal places.) Degree of operating leverage Calculate the estimated percent increase in net operating income for a 5% increase in sales. (Hint: Use the degree of operating leverage you already computed.) (Round your intermediate calculations and final answer to 2 decimal places.) Increase in net operating income
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