1. What is the contribution margin?

2. What is the contribution margin ratio?

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

4. What is the break-even point in dollar sales?

5. How many units must be sold to achieve a target profit of $8,400?

6. What is the margin of safety in dollars?

7. What is the margin of safety percentage?

8. What is the degree of operating leverage?

9. Using the degree of operating leverage, what is the estimated percentage increase in net operating income of a 5% increase in sales?

10. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?

11. If the variable cost per unit increases by $1, spending on advertising increases by $1,250, and unit sales increase by 150 units, what would be the net operating income?

Required information (The following information applies to the questions displayed below.) SCROLL DOWN to see all of the questions. York Company prepared the following contribution format income statement based on a sales volume of 1,000 units: Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 35,000 21,000 14,000 8,400 $ 5,600