Lin Corporation has a single product whose selling price is $134 per unit and whose variable expense is $67 per unit. The company’s monthly fixed expense is $31,750.

Required:
1. Calculate the unit sales needed to attain a target profit of $8,450. (Do not round intermediate calculations.)
2. Calculate the dollar sales needed to attain a target profit of $9,700. (Round your intermediate calculations to the nearest whole number.)

Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month’s budget appear below:

Selling price per unit $ 24
Variable expense per unit $ 14
Fixed expense per month $ 8,900
Unit sales per month 1,040

Required:
1. What is the company’s margin of safety? (Do not round intermediate calculations.)
2. What is the company’s margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. .1234 should be entered as 12.34).)
Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows:

Amount Percent of Sales
Sales $ 84,000 100%
Variable expenses 33,600 40%
Contribution margin 50,400 60%
Fixed expenses 38,640
Net operating income $ 11,760

Required:
1. What is the company’s degree of operating leverage?
2. Using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in unit sales.
3. Construct a new contribution format income statement for the company assuming a 5% increase in unit sales.