Chapter 6 - practice problem USA Security Systems is a company that installs a standard home security system for residential customers. Each system is sold for $3,500. The cost to put together and install the system is $1,925, In addition, the sales staff receives a commission of 10% of the selling price. Fixed costs are expected to be $551,250 and the company plans to sell 720 units. 1. Prepare a contribution format income statement 2. Compute the contribution margin ratio. 3. Determine the breakeven point in both units and sales dollars. 4. Compute the margin of safety in dollars and as a percentage. 5. Compute operating leverage. If sales are expected to increase by 10%, how much will the new net income be