1. BPN Company's most recent monthly contribution format income statement is given below:

Sales

$160,000

Less: variable expenses

100,000

Contribution margin

60,000

Less: fixed expenses

63,000

Operating income

(3,000)

The company sells its only product for $10 per unit. There were no beginning or ending inventories.

Required:

a. What is the company's contribution margin ratio?

b. What are total sales in dollars at the break-even point?

c. What are total variable expenses at the break-even point?

d. If unit sales were increased by 10% and fixed expenses were reduced by $2,000,what would be the company'sexpected operating income?