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:

a$.$ What is the contribution margin per unit?

b$.$ What is the variable expense ratio?

c$.$ If sales decline to $7,900$ units, what would be the estimated net operating income?

d$.$ 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?

e$.$ What is the break$-$even point in dollar sales?

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

g$.$ What is the margin of safety percentage?

h$.$ Using the degree of operating leverage, what is the estimated percent increase in net

operating income of a $15\%$ increase in sales volume?