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The following is Alsatia corporation's contribution format income statement for last month: Sales................... $1400000 Variable expenses ..... 90000 Contribution margin...500,000 Fixed expenses.........300,000 Net operating income..$200,000

The following is Alsatia corporation's contribution format income statement for last month: Sales................... $1400000 Variable expenses ..... 90000 Contribution margin...500,000 Fixed expenses.........300,000 Net operating income..$200,000 The company has no beginning or ending inventories and produced and sold 10,000 units during the month. Required: a. What is the company's contribution margin? b. What is the company's break-even in units? c. If sales increase by 100 units, by how much should net operating income increase? d. How many units would the company have to sell to attain target profits of $225,000? e. What is the company's margin of safety in dollars? f. What is the company's degree of operating leverage?

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