Total Per Unit Sales 40,000 2 Variable Costs: Cost of Goods Sold 15,000 0.8 Selling 7,000 0.4 Administrative 3,000 0.1 Total Variable Costs 25,000 1.3 Contribution Margin 15,000 0.7 Fixed Costs: Selling 4,000 Administrative 2,000 Total Fixed Costs 6,000 Net Income 9,000

1) Calculate the company's breakeven point in units (round to whole number, no comas)

2) Calculate the company's contribution margin ratio (round to two decimal places, no comas)

3) Calculate the number of units it needs to sell if wants to make a target profit of $10,000 (round to whole number, no comas)

4) Calculate the company's margin of safety in units (round to whole number, no comas)

5) Calculate the company's degree of operating leverage. ( round to two decimal places, no comas) b. If the company's sales are expected to increase by 25%, by what percentage will operating income change