Using calculations, your task is to explain to someone who does not have accounting knowledge the meaning behind the calculated figures for Blue Company. Break down each calculated number and offer a clear explanation. For example, delve into what the break$-$even point in unit sales signifies for Blue Company. Provide a comprehensive understanding of the implications tied to the $12$ calculations from the Case.

Blue company has prepared the following contribution format income statement based on a sales volume of $1,000$ units $($the relevant range of production is $500$ to $1,500$ units$)$:

Sales $ $20,000$

Variable expenses $12,000$

Contribution margin $8,000$ NOTE: Use the amounts in the original fact pattern to the left as your basis for the questions below.

Fixed expenses $6,000$

Net operating income $ $2,000$

Questions:

$1.$ What is the contribution margin per unit?

$2.$ What is the contribution margin ratio?

$3.$ What is the variable expense ratio?

$4.$ If sales increase to $1,001$ units, what would be the increase in net operating income?

$5.$ If sales decline to $900$ units, what would be the net operating income?

$6.$ If the selling price increases by $$2$ per unit and the sales volume decreases by $100$ units, what would be the net operating income?

$7.$ If the variable cost per unit increases by $$1,$ spending on advertising increases by $$1,500,$ and unit sales incrase by $250$ units, what would be the net operating income?

$8.$ What is the break$-$even point in unit sales?

$9.$ What is the break$-$even point in dollar sales?

$10.$ How many units must be sold to achieve a target profit of $$5,000?$

$11.$ What is the margin of safety in dollars?

$12.$ What is the degree of operating leverage?