The following is XYZs contribution format income statement for last month:

Sales	$600,000
Variable expenses	400,000
Contribution margin	200,000
Fixed expenses	100,000
Net operating income	$100,000

The company has no beginning or ending inventories and produced and sold 10,000 units during the month.

1 What is the company's contribution margin ratio?

2 What is the company's contribution margin?

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

4 If sales increase by 200 units, by how much should net operating income increase?

5 How many units would the company have to sell to attain a target profit of $200,000?

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

7 What is the company's degree of operating leverage?