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Sattler Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (8,000 units) Variable

Sattler Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range. Sales (8,000 units) Variable expenses Contribution margin $480,000 336.000 144,000 Fixed expenses 142.200 Net operating income $1.800 Required: a. What is the contribution margin per unit? (1 mark) b. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 15% increase in sales? (1 mark) c. What is the break-even point in unit sales and in dollar sales? (1+1-2 mark) d. What is the margin of safety percentage? (1 mark) e. Estimate how many units must be sold to achieve a target profit of $50,400. (1 mark) f. If the variable cost per unit increases by $5, spending on advertising increases by $2,000, and unit sales increase by 3,400 units, what would be the estimated net operating income? (2 mark) g. If Sattler has an opportunity to sell 400 units to a wholesaler without disturbing sales to other customers or fixed expenses, what price would it quote to the wholesaler if it wants to increase monthly profits by $6000? (2 marks)

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