Use the following information to answer the questions that follow. Please show your work. This may

require using a separate piece of paper. Make sure your name is on both.

Lake Berryessa Marine

Income Statements

For the Three Months Ending June $30$

April May June

Sales in units $6,5007,4007,000$

Sales revenue $$260,000$ $$296,000$ $$280,000$

Cost of goods sold $78,00088,80084,000$

Gross margin $182,000207,200196,000$

Selling & admin expenses

Advertising $5,0005,0005,000$

Shipping $67,50075,60072,000$

Depreciation $2,5002,5002,500$

Total selling & admin expenses $75,00083,10079,500$

Net operating income $$107,000$ $$124,100$ $$116,500$

$1.$ What is the CM per unit? $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$2.$ What is the CM ratio? $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$3.$ What is the break$-$even in units? $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$4.$ What is the break$-$even in dollars? $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$5.$ What level of sales is required to meet a target NOI of $$150,000?\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$6.$ What is the margin of safety ratio for May? $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$7.$ What is the DOL for May?