Agador Company produces a single product. The projected income statement for the coming year is as follows:

Sales (50,000 units @ $45) ......$2,250,000

Less: Variable costs ..........945,000

Contribution margin ........$1,305,000

Less: Fixed costs ............916,650

Operating income ...........$ 388,350

(Round all dollar answers to the nearest dollar. Round fractional answers to two significant digits.)

Required:

1. Compute the break-even sales dollars.

2. Compute the margin of safety in sales dollars.

3. Compute the degree of operating leverage (rounded to two decimal places).

4. Compute the new operating income if sales are 20 percent higher than expected. (Round to the nearest dollar.)