2. The following is Robin Corporations contribution format income statement for the last month:

Sales $1,600,000

Variable expenses $600,000

Contribution margin $1,000,000

Fixed expenses $600,000

Net operating income $400,000

The company has no beginning or ending inventories and produced and sold 20,000 units during the month.

Required:

1. What is the companys contribution margin ratio?
2. What is the companys break even in units?
3. If sales increased by 100 units, by how much should net operating income increase?
4. How many units would the company have to sell to attain target profits of $100,000?
5. What is the companys margin of safety in dollars?
6. What is the companys degree of operating leverage?