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For 2019, selected results for a company are shown below: Price per unit Net operating income Degree of operating leverage $

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Answer #1

Contribution margin in 2020:

= Net operating income X Degrees of operating leverage

= $10,773 X 2.5

= $26,932.50

Units sales in 2020:

= $183,600 / $12

= 15,300 units

Contribution margin per unit:

= $26,932.50 / 15,300

= $1.76

Contribution margin in 2019:

= $10,260 X 2.5

= $25,650

Units sold in 2019:

= 25,650 / $1.76

= 14,571 units

Unit sales in 2019 = 14571

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