The following is Ark Corporation's contribution format income statement for last month:
Sales $1,200,000
Variable Expenses 800,000
Contribution Margin 400,000
Fixed Expenses 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.
- What is the company's contribution margin ratio?
- What is the company's break-even in units?
- If sales increased by 100 units, by how much should net operating income increase?
- How many units would the company have to sell to attain a target profit of $125,000?
- What is the company's margin of safety?
- What is the company's degree of operating leverage?