Wrobbel Corporation produces and sells a single product. Data concerning that product appear below:

-------------------------Per Unit-----% of Sales

Selling Price..............$180.........100%

Variable Expenses........36............20%

Contribution Margin....$144.........80%

Fixed expenses are $716,000 per month. The company is currently selling 6,000 units per month. Consider each of the following questions independently.

Required:

1. What is the company's Contribution margin ratio?

2. What is the company's break-even in units?

3. If sales increase by 100 units, by how much should net operating income increase?

4. How many units would the company have to sell to attain a target profit of $125,000?

5. What is the company's degree of operating leverage?