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

Sales	$1000,000
Variable expenses	600,000
Contribution margin	400,000
Fixed expense	250,000
Net operating income	150,000

The Company has sold 20,000 units during the month.

a. What is the company's contribution margin ratio? (3 points)

b. What is the company's break-even in units? (3 points)

c. How many units would the company have to sell to attain a target profit of $125,000? (3 points)

d. What is the company's margin of safety in dollars? (3 points)

e. What is the revised net operating income if unit sales increase by 20% and fixed expenses increase by 20,000? (4 points)