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Samuel Nathan Corporation has provided the following contribution format income statement: Required: ( a ) What is the contribution margin per unit? ( b )
Samuel Nathan Corporation has provided the following contribution format income statement:
Required:
a What is the contribution margin per unit?
b What is the contribution margin ratio?
c What is the variable expense ratio?
d If sales increase to units, what would be the estimated increase in net operating
income?
c If sales decline to units, what would be the estimated net operating income?
If the selling price increases by $ per unit and the sales volume decreases by units, what
would be the estimated net operating income?
g If the variable cost per unit increases by $ advertising increases by $ and unit sales
increase by units, what would be the estimated net operating income?
h What is the breakeven point in unit sales?
i What is the breakeven point in sales dollars?
How many units must be sold to achieve a target profit of $
k What is the margin of safety in dollars?
l What is the margin of safety percentage?
What is the degree of operating leverage?
n Using the degree of operating leverage, what is the estimated percent increase in net
operating income of a increase in sales volume?
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