Required:

1. What is the company's Contribution margin ratio?

2. What is the company's break-even in units?

3. If sales increase by 100 units, by how much should net operating income increase?

4. How many units would the company have to sell to attain a target profit of $125,000?

The following is Arkadia Corporation's contribution format income statement for last month Sales $1,200,000 Variable expenses Contribution margin Fixed expenses Net operating income 800,000 400,000 300,000 $100,000 The company has no beginning or ending inventories and produced and sold 20,000 units during the month