The following is Alsatia Corporation's contribution format income statement for last month:

Sales

$1,400,000

Less: variable expenses

900,000

Contribution margin

500,000

Less: fixed expenses

300,000

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 ratio?

b) What is the company's break-even in units?

c) If sales increase by 100 units, by how much should operating income increase?

d) How many units would the company have to sell to attain target operating income of $225,000?

e) What is the company's margin of safety in dollars?

f) What is the company's degree of operating leverage?