Sattler Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.

Sales (8,000 units) $480,000

Variable expenses 336,000

Contribution margin 144,000

Fixed expenses 142,200

Net operating income $1,800

Required (3 points each):

a. What is the contribution margin per unit?

b. 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?

c. What is the break-even point in units and dollar sales?

d. Estimate how many units must be sold to achieve a target profit of $50,400.

e. What is the margin of safety percentage?