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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$)$:

Required: Sales $ $80,000$

Variable expenses $52,000$

Contribution margin $28,000$

Fixed expenses $21,840$

Net operating income $ $6,160$

$1.$ What is the contribution margin per unit?

Note: Round your answer to $2$ decimal places.

$2.$ What is the contribution margin ratio? $($AS A PERCENT$)$

$3.$ What is the variable expense ratio? $($AS A PERCENT$)$

$4.$ If sales increase to $1,001$ units, what would be the increase in net operating income?

Note: Round your answer to $2$ decimal places.

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

Note: Round "Per Unit" calculations to $2$ decimal places.

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

Note: Round "Per Unit" calculations to $2$ decimal places.

$7.$ If the variable cost per unit increases by $$1,$ spending on advertising increases by $$1,700,$ and unit sales increase by $240$ units, what would be the net operating income?

Note: Round "Per Unit" calculations to $2$ decimal places.

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

Note: Round intermediate calculations to $2$ decimal places.

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

$10.$ How many units must be sold to achieve a target profit of $$16,800?$

Note: Round intermediate calculations to $2$ decimal places.

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

$12.$ What is the degree of operating leverage?

Note: Round your answer to $2$ decimal places.

$13.$ Using the degree of operating leverage, what is the estimated percent increase in net operating income that would result from a $5\%$ increase in unit sales?

Note: Round your intermediate calculations and final answer to $2$ decimal places.

$14.$ Assume the amounts of the company$$s total variable expenses and total fixed expenses were reversed. In other words, assume the total variable expenses are $$21,840$ and the total fixed expenses are $$52,000.$ Under this scenario and assuming total sales remain the same, what is the degree of operating leverage?

Note: Round your answer to $2$ decimal places.

$15.$ Assume the amounts of the company$$s total variable expenses and total fixed expenses were reversed. In other words, assume the total variable expenses are $$21,840$ and the total fixed expenses are $$52,000.$ Using the degree of operating leverage, what is the estimated percent increase in net operating income of a $5\%$ increase in unit sales?

Note: Round your intermediate calculations and final answer to $2$ decimal places.

$16.$

The Cheyenne Hotel in Big Sky$,$ Montana, recorded its total electrical costs and number of occupancy$-$days over the last year. An occupancy$-$day represents a room rented for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer.

Month Occupancy$-$Days Electrical Costs

January $2,640$ $ $13,200$

February $2,860$ $ $14,300$

March $980$ $ $4,900$

April $2,420$ $ $12,100$

May $2,090$ $ $10,450$

June $4,470$ $ $18,860$

July $4,020$ $ $17,160$

August $3,940$ $ $16,760$

September $1,630$ $ $8,150$

October $1,090$ $ $5,450$

November $1,390$ $ $6,950$

December $2,910$ $ $14,550$

Required:

Using the high$-$low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy$-$day.

Note: Do not round your intermediate calculations. Round your Variable cost answer to $2$ decimal places and Fixed cost element answer to nearest whole dollar amount.