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?
Definitions:
Physical Examination Anxiety
Anxiety or fear that arises in anticipation of undergoing a physical examination.
Unhurried
Acting in a relaxed pace without rush.
Examining Gown
A garment provided to patients to wear in a medical setting that allows for easy access and examination by healthcare professionals.
Standard Precautions
Guidelines recommended by the Centers for Disease Control and Prevention (CDC) to reduce the risk of transmission of bloodborne and other pathogens in hospitals.
Q32: Hewett, Inc., manufactures and sells two products:
Q40: During February, Irving Corporation incurred $65,000 of
Q94: Harris Corporation produces a single product. Last
Q107: Marano Corporation produces and sells a single
Q112: Health Beverage Corporation uses a process costing
Q120: Sammis Inc., which produces and sells a
Q131: The following partially completed T-accounts summarize transactions
Q153: Havely International Corporation's only product sells for
Q186: Crossbow Corp. produces a single product. Data
Q187: When using data from a segmented income