Truth Company makes and sels a single product. The product costs $120 per unit and sells for $200 per unit. Total fixed expenses are $48,000. The company has sold 1,000 units. 6. Make a contribution income statement at the sales level of 1,000 units, using the information above 7. Compute the following: L unit contribution margin IL contribution margin ratio IL, break-even point in terms of units IV, break-even point in terms of sales dollars margin of safety (need to do #6 first) Yl degree of operating leverage (need to do #6 first) The company has set a target of achieving a $30,000 profit. How many units must be sold to achieve the target profit. 8. 9. Suppose the company's sales are expected to increase by 10% next period. By what percent will the company's profit increase? 10. Suppose that sales of this company increase by $50,000. By what amount the net operating income will increase? 11. Assume that unit variable expense has increased to $140. The company wants to have the same break- even point in units as before. For that purpose, the selling price per unit has to be changed to $ 12. A manager proposed that the company enhance the quality of the product and raise the selling price by 10% The quality enhancement will make variable cost sis more per unit. With addi onal spending of $12,000 in advertising (fixed expense), the sales units will increase by 20%. If the proposal is followed, the company's income will: I. Increase, Decrease, or Stay the same? II. By how much