Only question 5 and 6

2 Question 2 on (9 points) Question 2 (9 points): AIC is a manufacturing company which manufactures one product, the product has a Variable cost ratio = 25%, and the following table presents the Contribution margin income statement for the company. Per unit Total 2,000,000 $ 50 $ Sales Variable cost CONTRIBUTION MARGIN Fixed cost Net operating income 500,000 $ Solve the following: 1. Selling price per unit (1 point) 2. Contribution margin ratio (1 point) 3. Break-even point in units (2 points) 4. What is the margin of safety in $ ? (1 point) 5. Assume the company wants to achieve a profit level of 1,000,000 $, what is the amount of sales that they must reach to achieve this level of profit (2 points) 6. Assume the company's sales revenue increased by 35 %, what the effect be on the Net operating income? (2 points)