Zaccaria Corporation has provided the following contribution format income statement. All questions concern situations that are within the relevant range.

Sales (5,000 units) $300,000

Variable expenses 240,000

Contribution margin 60,000

Fixed expenses 58,800

Net operating income $1,200

Required:

a. What is the contribution margin ratio?

b. If sales increase to 5,040 units, what would be the estimated increase in net operating income?

c. If the selling price increases by $4 per unit and the sales volume decreases by 400 units, what would be the estimated net operating income?

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