Use the following information for questions 1-4. REM had no beginning inventory, and sold all inventory it produced. The predicted financial information, production and sales volumes for November were as presented below.

Total

Expected units

150,000

Revenue

2,400,000

Costs of production

Variable production costs

1,068,000

Fixed production costs

250,000

Total costs of production

1,318,000

Gross margin

1,082,000

Selling, general, and administrative expenses

Variable selling, general, and administrative expenses

357,000

Fixed selling, general, and administrative expenses

500,000

Total selling, general, and administrative expenses

857,000

Net operating income

225,000

Q1. What is REM Company's contribution margin?

Q2. What is REM Company's total variable cost per unit?

Q3. What is REM Company's contribution margin per unit?

Q4. What would net operating income be if REM produced and sold 180,000 units instead of 150,000?