The windy manufacturing company produced the following report:

Sales(100 units @ 200)		20,000
Manufacturing expenses
Variable expenses	14,500
Fixed expenses	500	15000
Cost of goods sold		(5000)
Selling and administrative
Variable expenses	1500
Fixed expenses	4000	5500
Net loss		(500)

1. How many units would have to be sold to break even?

2. If fixed overhead were to increase by 1800 what would be the break even point in units?

3. What is operating income if sales increase by 25%

4. Explain the relationship between break even and contribution margin?