(Answered) The following is arkadia corporations contribution format

Management Studies

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

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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