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

Sales $1,200,000

Less: Variable Expenses: $800,000

Contribution Margin: $400,000

Less: Fixed Expenses: $300,000

Operating Income: $100,000

1. What is the company's contribution margin ratio?

2. What is the company's break-even in units?

3. If sales increase by 100 units, by how much should operating income increase?

4. How many units would the company have to sell to attain target operating income of 25,000?

5. What is the company's margin of safety in dollars?

6. What is the company's degree of operating leverage? Explain how a company could use this number in terms a non-accountant could understand.

7. If the tax rate is 30%, how many units must be sold to attain an after-tax profit of $84,000?

You can use either the formula or equation methods to show your answers.