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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 8,050 units, what would be the estimated increase in net operating
income?
(c) If sales decline to 7,900 units, what would be the estimated net operating income?
(9) If the selling price increases by $4 per unit and the sales volume decreases by 200 units, what
would be the estimated net operating income?
(g) If the variable cost per unit increases by $5, advertising increases by $3,000 and unit sales
increase by 450 units, what would be the estimated net operating income?
(h) What is the break-even point in unit sales?
(i) What is the break-even point in sales dollars?
(0) How many units must be sold to achieve a target profit of $54,500?
(k) What is the margin of safety in dollars?
(l) What is the margin of safety percentage?
(m) 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 15% increase in sales volume?
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