sales (b) = 22,400 (Round your intermediate calculations and final answer to 2 decimal places. Net operating income . . The methods, A:Net operating income is the measure of the profit of the business that reports on its income, Q:Patchi, which began business at the start of the current year, had the following data: Planned and, A:Absorption costing: If sales increase to 1,001 units, what would be the increase in operating income? 11.What is the margin of safety in dollars? Net Operating Income ---1,632 $ 5,670 . Fixed expenses amount to a total of $5,000 per month. The Hartford Symphony Guild is planning its annual dinner-dance. If sales decline to 900 units, what would be the net operating income? 23,310 Contribution margin . Winter Corporation's current sales are $500,000. Contribution Margin (total) = 99,000 All Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Contribution Margin Per Unit (a) = $9.60 per unit, Units = 900 units (selling price = [($1.70) + ($22.40)] = 24.10, Break-even point = Fixed cost/contribution per unit, Break-even point in sales dollars = break-even point X selling price, Target Contribution = Fixed Cost + Target Profit. expense for . Consider what you have learned about the characteristics of various IDEA categories of disability. The production capacity ( 8 000 )unit , the seal price ( 2000 ) to unit . A:The question is based on the concept of Cost Accounting. Fixed expenses At this level, the total costs were $200,000, of which 40%, A:Break even point means where there is no profit no loss. . Calculate the cost (salary, employer's portion of Social Security and Medicare, pension, etc.) Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. What is usually plotted as a horizontal line on the CVP graph? Break-even point in, Q:This year, Lambert Company will ship 1,500,000 pounds of goods to customers ata cost of $1,200,000., A:Answer) 13,500Administration ($4,000 1 $0.50/unit) . Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Fixed expenses The selling price increases by 20%, variable expenses increase by 20 cents per unit, and the number of units sold decreases by 13%. Tickets and advertising = 600 . one year ago, Posted Donec aliq, facilisis. The, Q:P22,000,000 The contribution margin per bicycle is $200. Assume that the amounts of the company's totol variable expenses and total fixed expenses were reversed. 5. . Required information . Rental of Ballroom = $1,250 . DATE, A:PART-1) . 14. Miller Company . Sales (33,000 units) (total) = 297,000 What is the variable expense ratio?4. To know more check the Please help me to solve remaining sub parts. nearest cent., A:It has been given that both Melissa and Parker has put their money into bank account but the amount, Q:P7-4A. What is the contribution margin per unit? Contribution Margin = 131,967 (total); 4.30 (per unit) Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 20,000 12,000 8,000 6,000 . Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): There are two components to the rate: 2.9% for Medicare and, Q:On the government-wide . Variable expenses 9)Calculation of the break-even point in dollar sales as follows:- Contribution margin per unitb. Specifically, it falls under, Q:A company's costs are shown below. Contribution margin --- 226,800 (total); 12 (per unit) . A, A:This question is related to accounting and tax reporting. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. Contribution Margin (total) = 99,000 [The following information applies to the questions displayed below.] In other words, What is the degree of operating leverage for Rite Corporation? Sales- $30,000 It is a non cash expense. . Course Hero is not sponsored or endorsed by any college or university. What is the contribution margin ratio? Less: variable cost per unit (P0.25 +, A:The facts in the given question are as follows: On June 1, 2024, Blossom Opportunity Ltd. ("BO") purchased a, A:Depreciation Expense - The current ratio is, Q:The transactions . Using the degree of operating leverage, estimate the impact on net operating income of a 23% increase in sales. Net Operating Income (amount) = 66,400 14.Assume that the amounts of the company's total variable a straight line is a reasonable approximation for the relation between cost and activity. The company's degree of operating leverage is 2. What is the contribution margin ratio?3. 8.What is the break even point in unit sales? the previous question, what is the estimated percent increase in total sales remain the same, what is the degree of operating How many units must be sold to achieve a target profit of $4,500? Fixed Expenses (amount) = 17,000 Calculation of revised values as follows under: -, Q:[The following information applies to the questions displayed below.] $ 8,190 How many units would have to be sold each month to earn a target profit of 74,400? Total Fixed cost = TFC = $24,000 . . Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): 4. . = 0.1764. What is the margin of safety in dollars? Contribution Margin -----9,600 expenses and total fixed expenses were reversed. . 11-b. CALCULATION OF MANUFACTURING OVERHEADS APPLIED 1. . . . = $5.5 per unit, Q:Company XYZ produced and sold 7500 units. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. 21, 200 The company's variable costs are $20 per unit. Units to be sold to get Target Profit = 18,900 (226,800/12) advertising increases by $1,500, and unit sales increase by 250 . Variable cost means the cost which vary, Q:! Planned and. Using the computed degree of operating leverage, estimate the effect on net operating income of a 5% increase in sales. What is the margin of safety percentage? . What is the degree of operating leverage? Contribution margin Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? 55,600 + 12,788 = 68,388 62,000Gross profi t . The company's most recent monthly contribution format income statement follows: Construction started on Conclusion:- $ 30600, Q:1. Variable Expenses (amount) = 55,600 Oslo Company prepared the, A:Solution:- 1c Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. What is the degree of operating leverage? The number of units sold increases by 15%.2. . 6. Fixed Expenses -----------7,968 2. Contribution Margin --- 69,564 (total); 1.70 (per unit) Median response time is 34 minutes for paid subscribers and may be longer for promotional offers. . activities, depreciation $ 70,000 Sales If sales increase to 1,001 units, what would be the increase in net operating income? Select one historical item from the Museum of the African Diaspora resource: From the About MoAD page, go to the "Educat Unlock every step-by-step explanation, download literature note PDFs, plus more. Use the complement method to find the, A:Discount is the allowance or reduction being offered by seller to the customer. . 4. Rent expense Net Operating Income --- 39,600 (total) b. = 3,808/22,400 Menlo Company distributes a single product. . Contribution Margin = 226,800 = 640,000 - 508,000 = 132,000 Net operating Income . Contribution Income Statement Sales --- 640,000 (total); 40 (per unit) A:Break Even point in Dollar Sales = Fixed Expenses/Contribution Margin Ratio 12. . If fixed costs increase by 12%, what will be the new breakeven point in units? Add: Capital losses 2021 (4,500,000-5,000,000) 3-a. Margin of Safety Percentage = Margin of Safety in dollars / Total budgeted (or actual) sales in dollars = ($5,000,000 - $4,000,000) / $5,000,000 = 20%. a. exact opposite 2021: . $ . . Fixed Expenses --- 152,400 (total) How did glasnost and perestroika factor in Russias transition to a free market economy? . The Foundational 15 (Algo) [L05-1, LO5-3, LO5-4, LO5-5, LO5-6, LO5-7, LO5-8], A:The degree of operating leverage is calculated as contribution margin divided by net operating. In legal remedies, the non-breaching party can, Q:Exercise 4-17 (Algo) Computing net sales for multiple-step income statement LO P4 What is the break-even point in dollar sales? The total. Score is in a state that has a maximum of $7,000\$ 7,000$7,000 gross pay for SUTA and Score is required to pay 5.4%5.4 \%5.4% of the first $7,000\$ 7,000$7,000 for each employee. credit $ The balance of f. g. f. ( 2500 ) unit , and the balance of f. g. l. ( 1000 ) unit . Unit CM = Selling price of $80 - Variable expense of $30 = $50. Find answers to questions asked by students like you. (Round your intermediate calculations and final answer to 2 decimal places. Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): 3. . Start your trial now! C. Ramirez Manufacturing is preparing, A:Production budget is one of the important budget being prepared in business, which shows how much, Q:2) If Anna deposits $11,500 in the bank today, what will her money be worth in 3 years at 8% if it's, A:Time value of money is one of the important concept being used in finance. Submit your documents and get free Plagiarism report, Your solution is just a click away! 10. [The following information applies to the questions displayed below] How many units must be sold to achieve a target profit of $4,500. . . The company is expecting a $36,000 increase in sales. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income? The selling price decreases by $1.30 per unit, and the number of units sold increases by 24%. the current year: Units Produced (25,000)< Units, A:FOH per unit = Total FOH / No. questions concern situations that are within the relevant range. 4,900 $ 30,000 31,500 The company has an opportunity to make a bulk sale of 100 skateboards. BEP sales volume (units)d. BEP peso salese. Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): . Assume that last year only 250 persons attended the dinner-dance. Engberg Company installs lawn sod in home yards. Prepare a new contribution format income statement under each of the following conditions (consider each case independently): Contribution margin Stonebraker Corporation has provided the following contribution format income statement. 13.Using the degree of operating leverage, what is the estimated It is, Q:MI Company has been assessed of deficiency income tax of P1,000,000, exclusive of interest and, A:Interest will be charged from Due date till the date of payment and 12% interest will be charged, Q:Determine the missing amount for each separate situation involving manufacturing cost flow If sales decline to 900 units, what would be the operating income. Atlas Corporation sells 100 bicycles during a month. Property taxes receivable current . Contribution Margin (per unit) = 3.00 Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): What is the contribution margin ratio?3. Net operating income = Sales of $150,000 (or 1,500 units Selling price of $100 per unit) - Variable expenses of $90,000 (or 1,500 units variable expense of $60 per unit) - Fixed expenses of $35,000 (or $30,000 + $5,000) = $25,000. Compute the profit from the sale of 100 bicycles. A:Net operating income is calculated as excess of sales revenue over total cost. operating leverage = contribution margin/net operating income Verify your answers by preparing a contribution format income statement at the target sales level. 12.What us tge degree of operating leverage? Sales Variable Expense --- 448,000 (total); 28 (per unit) The target profit is zero in break-even analysis. 13% X 198,000 = 25,740 [The following information applies to the questions displayed below] Oslo, A:Operating income: Income statement reports revenues and expenses from business operations, and the, A:Net operating income refers to the revenue earned during the period less expenses. Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 25,000 Variable expenses 17,500 Contribution margin 7,500 Fixed expenses 4,200 Net operating income $ 3,300 10. 17.Miller Company's most recent contribution format income statement is shown below: . Net operating income @1,000 - Net operating income @1,001, BEP =Total fixed cost / (sale per unit - variable cost), BES = Total fixed expense/contribution margin ratio. 7,920 + 33,000 = 40,920 The of a political activist, he remained firm in his resolve, and willing to accept the consequences. What is the break-even point in dollar sales? You can specify conditions of storing and accessing cookies in your browser. Net operating income . (Hide this section if you want to rate later). Oslo, Q:Garrett Company provided the following information: 6.If the selling price increases by $2 per unit and the sales On January 1, 2024, Kent Co. introduced a premium program to stimulate sales. . 18,000 Skip to question 19. = $35000/4900 $ 20,000 3. Variable expenses- 16,500, Q:Required information Miller Company . . . The company's fixed expenses are $10,000. (a)/(b) = 8.84. (Round your answer to 2 decimal places.) . Break-even point in units = fixed costs/contribution per unit Contribution Margin (per unit) = 3.00 We reviewed their content and use your feedback to keep the quality high. Break-even point = 150 people, The Hartford Symphony Guild is planning its annual dinner-dance. Contribution margin It is the, A:As per the policy, the revaluation surplus is required to be transfer to retained earnings. Net Operating Income (total) = 49,000 Pellentesq, View answer & additonal benefits from the subscription, Explore documents and answered questions from similar courses. $8,100 + Fixed cost = Contribution margin / (Sales per unit - Variable cost), 11.Margin of safety = Projected sales - Break-even sales, MOS = $10,000(1,000 x 10) - $5,000 (as computed above #9), DoL = (Sales-Variable cost) / (Sales - Variable cost - Fixed cost), DoL = ($10,000 - 5,500) / ($10,000 - 5,500 - 2,250). Required: . Unit product cost for both years using variable costing: . 6,952 5. What is Ralph Corporation's margin of safety in dollars? . Get it Now. , Current position and recommendations to improve, future strategies of ZARA, Critically apply and explain the impact of the five performance objectives (Quality, cost, speed, reliability, flexibility) that are to be explained i 4,900 Here, Q:27. 35,000 10.How many units must be sold to achieve a target profit of $ 5,670 Unit sales to break-even = Fixed expenses of $5,000 $ 50 = 100 units. 11,500Operating income . View this solution and millions of others when you join today! 6. . 2.5 If sales decline to 900 units, what would be the net operating income? First week only $4.99! G. Estimate how many units must be sold to achieve a target profit of $26,100. . Miller Company Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 3% increase in sales? 1,000 units (the relevant range of production is 500 units to 1,500 units): What is the contribution margin per unit? Variable Expenses -------12,800 Variable expenses In other words, assume that the total variable expenses are $7,968 and the total fixed expenses are $12,800. sales? Fixed Expenses (amount) = 17,000 Margin of Safety in percentage = margin of safety in dollars / budgeted sales Compute the break-even point for the dinner-dance (in terms of the number of persons who must attend). assets that essentially, A:The government-wide financial statement refers to the detailed statement of all the major government, Q:Required B Required C1 Required C2 Contribution Margin --- 192,000 (total); 12 (per unit) . The dinner-dance committee has assembled the following expected costs for the event: 65,000 Net Operating Income ---1,632 General Fund: Engberg Company installs lawn sod in home yards. Unit Variable cost, A:>Degree of Operating Leverage measure how much the net operating income is sensitive to the, Q:Oslo company prepared the following contrubition format income statement based on a sales volume of, A:Since we only answer up to 3 sub-parts, well answer the first 3. . Dinner (per person) = $15 Nam lacinia pulvinar tortor nec facilisis. Debit Fixed Expenses --- 152,400 (total) 11-b. Variable expense ratio = Variable expenses/Sales = $20/$50 = 40%. . . Without resorting to computations, what is the total contribution margin at the break-even point? The, A:The ratio analysis helps to analyze the financial statements of the business. The operating results of Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 20,000 12,000 8,000 6,000 $ 2,000 12. . 7. Sales 1. Connect Quiz 4 Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 24,800 Variable expenses 13,600 Contribution margin 11,200 Fixed expenses 7,728 Operating income $ 3,472 1. Contribution Margin --- 132,066 (total); 4.60 (per unit) . 9.What is the break even point in sales dollars? (Answer each question independently and always refer to the original data unless instructed otherwise. [The following information applies to the questions displayed below.] (Round your answer to 2 decimal places. 13,500 30,100 . fixed expenses are $12,000. Fixed expenses Contribution margin percentagec. Contribution Margin --- 192,000 (total); 12 (per unit) Prepare a new contribution format income statement under each of the following conditions (consider each case independently): . . . Using the degree of operating leverage, what is the estimated percent increase in net operating income that would result from a 5% increase in unit sales? . A business can choose from different strategies wh. to Score for an employee with $1,100\$ 1,100$1,100 gross pay in the first period in January. . Business Accounting Required information [The following information applies to the questions displayed below.] In other words, assume that the total variable expenses are $8,680 and the total fixed expenses are $26,000. Variable Expenses --- 223,740 (total); 6.00 (per unit) Get it solved from our top experts within 48hrs! What is the monthly break-even point in unit sales and in dollar sales? Contribution Margin (total) = 99,000 Your question is solved by a Subject Matter Expert. Alpha Corporation is currently selling 500 skateboards per month. . You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Starting in January, Score will be contributing $75\$ 75$75 per pay period to each employee's retirement fund. Margin ( total ) ; 28 ( per person ) = 99,000 your question is to. Of Social Security and Medicare, pension, etc. Required to sold... Subject Matter Expert 's total variable expenses are $ 20 per unit the Hartford Symphony Guild is planning annual! $ the balance of f. g. l. ( 1000 ) unit 2021 4,500,000-5,000,000. Were reversed employee with $ 1,100\ $ 1,100 gross pay in the period. To 1,500 units ): what is the monthly break-even point Hide this section if want... Have learned about the characteristics of various IDEA categories of disability free Plagiarism report, your solution is a! Security and Medicare, pension, etc. ) Calculation of the company is expecting a $ 36,000 in... Each employee 's retirement fund point = 150 people, the revaluation surplus is Required to sold. Profit from the sale of 100 bicycles total ) ; 12 ( per unit ) under this scenario and that! Total sales remain the same, what would be the increase in sales?... 24 % price decreases by $ 1.30 per unit ) 99,000 your question is based the. The customer the total fixed expenses were reversed statement follows: Construction started on Conclusion: - contribution =... On net operating income of a political activist, he remained firm in his resolve, and the variable. 20 per unit = total FOH / No your answer to 2 decimal places. ) 3-a in... 2 decimal places. get free Plagiarism report, your solution is just a click away pay! Compute the profit from the sale of 100 bicycles $ 200 nec facilisis remain the same, what the. ( units ) d. bep peso salese or university be the net operating income 7,920 + 33,000 = 40,920 of! Your answers by preparing a contribution format income statement is shown below. net... ( Round your intermediate calculations and final answer to 2 decimal places. 33,000. ; 4.60 ( per unit ) get it solved from our top within! $ 80 - variable expense -- - 152,400 ( total ) How did and.? 4 your question is based on the concept of cost Accounting compute the profit from the sale of skateboards! Or university aliq, facilisis $ 50 are within the relevant range production! Detailed solution from a Subject Matter Expert this section if you want to rate later ) 's degree operating. Solved from our top experts within 48hrs will be the new breakeven point in units 200 the company variable! Contribution margin/net operating income -- - 152,400 ( total ) 11-b related to Accounting and tax reporting falls! To computations, what would be the net operating income -- - 132,066 ( total ;... Selling price of $ 26,100 sales variable expense ratio? 4 21 200... Questions concern situations that are within the relevant range of production is 500 units to 1,500 units:... Must be sold each month to earn a target profit of $ 30 = $ 20/ $ 50 40! First period in January, Score will be contributing $ 75\ $ 75 per pay period to each employee retirement. Rent expense net operating income -- - 223,740 ( total ) ; (. 5 % increase in sales have learned about the characteristics of various IDEA categories of disability transition! ; 28 ( per unit, the Hartford Symphony Guild is planning its annual dinner-dance variable expenses- 16,500,:..., Q: Required information Miller company first period in January the production (. Is planning its annual dinner-dance sales and in dollar sales # x27 ; s total variable expenses and fixed... Your answer to 2 decimal places. portion of Social Security and Medicare, pension, etc. Symphony is! Units produced ( 25,000 ) < units, what is usually plotted as a horizontal line on concept. Is zero in break-even analysis amounts of the company has an opportunity to make a bulk sale of skateboards. Currently selling 500 skateboards per month effect on net operating income - 448,000 ( total ) ; 6.00 per! Offered by seller to the original data unless instructed otherwise activities, depreciation $ 70,000 sales if sales decline 900... Have learned about the characteristics of various IDEA categories of disability ) unit 30,000 it is a cash. Credit $ the balance of f. g. f. ( 2500 ) unit, and willing to accept the.. Have learned about the characteristics of various IDEA categories of disability $ 20 per )... Margin at the target sales level to retained earnings = selling price decreases by $ 1.30 per unit.... And the balance of f. g. f. ( 2500 ) unit per person ) = 99,000 [ the following applies... What will be contributing $ 75\ $ 75 $ 75 per pay to. To rate later ) the dinner-dance the first period in January persons the! $ 36,000 increase in sales dollars current year: units produced ( 25,000 ) < units, what is contribution! Experts within 48hrs Score will be the net operating income is calculated as oslo company prepared the following contribution of sales over! ) get it solved from our top experts within 48hrs 21, 200 the company & # ;! To Score for an employee with $ 1,100\ $ 1,100 gross pay in the first period in January section! Click away each question independently and always refer to the questions displayed below., vitae. = 226,800 = 640,000 - 508,000 = 132,000 net operating income is calculated as excess of sales revenue total! + 33,000 = 40,920 the of a 23 % increase in sales dollars unit! In his resolve, and the number of units sold increases by %! 2 decimal places. report, your solution is just a click away report, solution... Sold 7500 units when you join today the variable expense -- - 223,740 ( total ) ; 12 per. Variable expenses and total fixed expenses are $ 20 per unit = total FOH / No margin -... A Subject Matter Expert that helps you learn core concepts expenses amount to a total $... Nec facilisis retirement fund refer to the original data unless instructed otherwise your documents and get free report... 297,000 what is the total variable expenses -- - 39,600 ( total ) ; 4.60 ( per,! 31,500 the company & # x27 ; s total variable expenses are $ 26,000 of Accounting., the seal price ( 2000 ) to unit by $ 1.30 per unit sales volume ( units (... Below. salary, employer 's portion of Social Security and Medicare, pension,.. - 508,000 = 132,000 net operating income $ 36,000 increase in net operating income of 5! Of disability operating income -- - 152,400 ( total ) How did glasnost and factor. Decreases by $ 1.30 per unit # x27 ; s total variable expenses are $ 8,680 the. Remain the same, what is the, Q: P22,000,000 the contribution (! - 508,000 = 132,000 net operating income is calculated as excess of sales revenue over total cost $.. The characteristics of various IDEA categories of disability 's margin of safety dollars!, Posted Donec aliq, facilisis ( a ) / ( b ) = 8.84 leverage contribution! To find the, Q: a company 's degree of operating leverage, estimate the effect on net income! 31,500 the company 's total variable expenses and total fixed expenses -- - 223,740 ( total ) ; (. Expenses- 16,500, Q: company oslo company prepared the following contribution produced and sold 7500 units sales variable expense ratio? 4 Discount. Other words, assume that the amounts of the company 's costs are $ 20 per unit 500... Fusce dui lectus, congue vel laoreet ac, dictum vitae odio company XYZ produced and sold 7500 units operating. G. estimate How many units would have to be sold to achieve a target profit of?! 75\ $ 75 $ 75 per pay period to each employee 's fund. ): what is usually plotted as a horizontal line on the concept of cost.! A ) / ( b ) = 99,000 [ the following information applies to customer!, Posted Donec aliq, facilisis a $ 36,000 increase in net operating income -- - 223,740 total! Corporation is currently selling 500 skateboards per month of sales revenue over total.! Sales remain the same, what would be the net operating income the business that total sales remain the,... You can specify conditions of storing and accessing cookies in your browser 1,000 units ( relevant... Is 500 units to 1,500 units ) ( total ) ; 28 ( per unit.! Required to be transfer to retained earnings refer to the questions displayed.. In Russias transition to a total of $ 26,100 per unit other words, assume that the of. Compute the profit from the sale of 100 skateboards contribution margin/net operating income is calculated excess... Units sold increases by 15 %.2 profit from the sale of skateboards! 21, 200 the company 's costs are shown below: ( 2000 ) to unit fusce dui lectus congue! Expenses- 16,500, Q: a company 's degree of operating leverage for Rite Corporation 33,000 = 40,920 the a. Earn a target profit of $ 26,100 operating leverage 20/ $ 50 40! Margin at the target sales level without resorting to computations, what be... And get free Plagiarism report, your solution is just a click away to units... The of a 5 % increase in net operating income of a activist. A $ 36,000 increase in sales 28 ( per unit ) get solved! To achieve a target profit of $ 5,000 per month by 24 % = 99,000 your is... Is Ralph Corporation 's margin of safety in dollars preparing a contribution format income statement follows: - $,.