XYZ Company has the following contribution margin income statement:

TotalPer UnitSales (20,000 units)$1,200,000$60Less: Variable costs-$900,000-$45Contribution Margin$300,000$15Less: Fixed costs-$240,000 Net income$60,000

Required to calculate:

#1 CM Ratio and Variable Expense Ratio (4 Marks)

#2 Break-Even Point in dollars sales and in units (4 Marks)

#3 Break Even Point with targeted in Net Income $90,000 (4 Marks)

#4 Margin of Safety (4 Marks)

#5 Degree of Operating Leverage (DOL) (4 Marks)