Question: Required: Redo the company's contribution format income statement assuming that the company sells 3,400 units. 2. The following is Arkadia Corporation's contribution format income statement

Required: Redo the company's contribution format income statement assuming that the company sells 3,400 units.

2. The following is Arkadia Corporation's contribution format income statement for last month:

Sales $1,200,000

Variable costs 800,000

Contribution Margin 400,000

Fixed costs 300,000

Net Operating Income $100,000

The company has no beginning or ending inventories and produced and sold 20,000 units during the month. Required: a. What is the company's contribution margin ratio? b. What is the company's break-even in units? c. If sales increase by 100 units, by how much should net operating income increase? d. How many units would the company have to sell to attain a target profit of $125,000? e. What is the company's margin of safety in dollars? f. What is the company's degree of operating leverage?

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