question 1 - Salt Corporation's contribution margin ratio is 70% and its fixed monthly expenses are $50,000. Assume that the company's sales for May are expected to be $109,000.

Required: Estimate the company's net operating income for May, assuming that the fixed monthly expenses do not change.

question 2- Fern Corporation manufacturers a single product that has a selling price of $20.00 per unit. Fixed expenses total $42,000 per year, and the company must sell 6,000 units to break even. If the company has a target profit of $14,000, sales in units must be:

question 3-

Grape Inc., which produces and sells a single product, has provided the following contribution format income statement for March:

Sales (5,000 units)	$	290,000
Variable expenses		100,000
Contribution margin		190,000
Fixed expenses		105,700
Net operating income	$	84,300

Required:

Redo the company's contribution format income statement assuming that the company sells 5,200 units.