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

Sales	$1,200,000
Less: variable expenses	300,000
Contribution margin	900,000
Less: fixed expenses	400,000
Operating income	$500,000

The company has no beginning or ending inventories and produced and sold 30,000 units during the month. Required: a) What is the company's contribution margin ratio? (2 marks)

b) What is the company's break-even in units? (2 marks)

c) If sales increase by 100 units, by how much should operating income increase? (2 marks)

d) What dollar amount of sales would the company have to sell to attain target before-tax operating income of $460,000? (2 marks)

e) What is the company's margin of safety in dollars? (2 marks)

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