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

Sales ............................ $ 20,000

Variable expenses ............... 12,000

Contribution margin ............. 8,000

Fixed expenses ................... 6,000

Net operating income ......... $ 2,000

Required

(Answer each question independently and always refer to the original data unless instructed otherwise.)

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 declined 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?

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

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

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