Reference no: EM132639794

Omar Company prepared the following contribution format income statement based on 100,000 units of sales.

Sales............................................................................................................$3,000,000

Variable expenses........................................................................................1,800,000

Contribution margin.....................................................................................1,200,000

Fixed expenses..................................................................................................900,000

Net operating income.................................................................................... 300,000

Required:

Question 1: If sales increase by 1,000 units what would be the net operating income?

Question 2: If sales decrease by 1,000 units what would be the net operating income?

Question 3: If the selling price increases by $2 per unit and the sales volume decreases by 10,000 units what would be the net operating income?

Question 4: How many units must be sold to achieve a net operating income of $350,000?