What is the contribution margin per unit and the contribution margin ratio for the contribution format income statement below. Be sure to include step by step calculations to support your answers.

Sales (100 units)	$ 50,000
Variable expenses	12,500
Contribution margin	37,500
Fixed expenses	20,000
Net operating income	$ 17,500

Does the contribution margin ratio change as the volume of sales changes? Include an example to support your answer.

What formula is used to calculate the unit sales needed to attain the target profit? Include an example to support your answer.

Given the information below, what are the unit sales required to earn a target profit of $50,000 if fixed expenses are $25,000? Please show your calculations.

	Per Unit
Sales	$ 500
Variable expenses	125
Contribution margin	$ 375

What does it mean to have a margin of safety of 15%? Use sales of $100,000 to support your explanation.

Manufacturing companies can produce income statements using either variable costing or absorption costing. Explain how manufacturing overhead is handled under variable costing and under absorption costing.