% per unit $ Units sold Sales $ 20,000.00 100% $ 20.00 1000 Variable expenses $

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% per unit $ Units sold Sales $ 20,000.00 100% $       20.00 1000 Variable expenses $ 12,000.00 60% $       12.00 Contribution Margin $    8,000.00 40% $        8.00 Fixed Expenses $    6,000.00 Net operating income $    2,000.00 1. What is the contribution margin per unit? 2. What is the contribution margin ratio? 1. Total contribution margin 3. What is the variable expense ratio? Total units sold units 4. If sales increase to 1,001 units, what would be the increase in net operating income? Contribution margin per unit per unit 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 increase by 250 units, what would be the net operating income? 2. Total contribution margin 8. What is the break- even point in unit sales? Total sales 9. What is the break- even point in dollar sales? Contribution margin ratio 10. How many units must be sold to achieve a target profit of $ 5,000? 11. What is the margin of safety in dollars? What is the margin of safety percentage? 12. What is the degree of operating leverage? 3 Total variable expenses 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? Total sales 14. Assume that the amounts of the company % per unit $ Units sold Sales $ 20,000.00 100% $       20.00 1000 Variable expenses $ 12,000.00 60% $       12.00 Contribution Margin $    8,000.00 40% $        8.00 Fixed Expenses $    6,000.00 Net operating income $    2,000.00 1. What is the contribution margin per unit? 2. What is the contribution margin ratio? 1. Total contribution margin 3. What is the variable expense ratio? Total units sold units 4. If sales increase to 1,001 units, what would be the increase in net operating income? Contribution margin per unit per unit 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 increase by 250 units, what would be the net operating income? 2. Total contribution margin 8. What is the break- even point in unit sales? Total sales 9. What is the break- even point in dollar sales? Contribution margin ratio 10. How many units must be sold to achieve a target profit of $ 5,000? 11. What is the margin of safety in dollars? What is the margin of safety percentage? 12. What is the degree of operating leverage? 3 Total variable expenses 13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? Total sales 14. Assume that the amounts of the company

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