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slo Company prepared the following contribution format income statement ased on a sales volume of 1,000 units (the relevant range of production is Do units
slo Company prepared the following contribution format income statement ased on a sales volume of 1,000 units (the relevant range of production is Do units to 1500 units) Required: (Answer each question independently and always refer to the onginal data unless instructed otherwise.) 1. What is the contnbution margin per unit? 2. What is the contribution margin ratio? 3. What is the variable expense ratio? 4. If sales increase to 1,001 units, what would be the increase in net operating income? 5. If sales decine to 900 units, what would be the net operating income?lis 6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? 7. If the variable cost per unit increases by $1, spending on adve jising increases by $1,500, and unit sales increase by 250 units, whatwould be the net operating income? 8. What is the break-even point in unit sales? 9. What is the break-even point in sales dollars? 10. How many units must be sold to achieve a target profit of $5,000 ? 11 What is the maroin of safelv in dollars? What is the marnin of safetv (Answer each question independently and always refer to the original data unless instructed otherwise) 1. What is the contribution margin per unit? 2. What is the contnbution margin ratio? 3. What is the vanable expense ratio? 4. If sales increase to 1,001 units, what would be the increase in net operating income? 5 If sales decline to 900 units, what would be the net operating income?his 6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? 7 . If the variable cost per unit increases by $1, spending on advertising increases by $1,500, and unit sales increase by 250 units, what would be the net operating income? 8. What is the break-even point in unit sales? 9. What is the break-even point in sales dollars? 10 How many units must be sold to achieve a target profit of $5,000 ? 11. What is the margin of safety in dollars? What is the margin of safety percentage? 12. What is the degree of operating leverage? 13 Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? 14. Assume that the amounts of the compri's's total vanable expenses and total fxed expenses were reversed. In otter words, assume that the total variable expenses are $6,000 and the total fixed expenses are $12,000 Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? 15 Using the degree of operating leverage that you computed in the previous question, what is the estimated percent increase in net operating income of a 5% increase in sales
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