Sales (10,000 units)

S1,500,000

Less: variable expenses

900,000

Contribution margin

600,000

Less: fixed expenses

400,000

Operating income

$200,000

1-What is the company's contribution margin ratio? *

2-What is the company's break-even in dollar? *

3-If sales increase by 100 units, by how much should operating income increase? *

4-How many units would the company have to sell to attain target operating income of $230,000? *

5-What is the company's margin of safety in dollars? *