Degree of Operating Leverage cost equals $$78,000($includes fixed factory overhead and fixed selling and administrative expense$).$ Operating income at $3,500$ units sold is $$58,500.$Impact of Increased Sales on Operating Income Using the Degree of Operating Leverage to increase sales by $10\%$ next year.Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense

For each of the following independent situations, calculate the amount$($s$)$ required.

Required:

nearest cent.

$

contribution margin ratio? Note: Enter the contribution margin ratio as a percentage, rounded to two decimal places.

Contribution margin ratio

$\%$

Round answers to the nearest cent.

Price

Variable cost per unit

Contribution margin per unit

$

$

$

Required:

Calculate the percent change in operating income expected.

$\%$

Calculate the operating income expected next year using the percent change in operating income calculated in Requirement $1.$

Required:

Calculate the degree of operating leverage. Note: Round answer to one decimal place.Margin of Safety cost equals $$78,000($includes fixed factory overhead and fixed selling and administrative expense$).$ Break$-$even units equal $2,000.$

Required:

Calculate the margin of safety in terms of the number of units. units

Calculate the margin of safety in terms of sales revenue.