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

Sales (46,000 @ $40)................. $1,840,000
Total variable cost....................... 1,012,000
Contribution margin................... $ 828,000
Total fixed cost............................... 733,320
Operating income......................... $ 94,680

Required:
1. Compute the break-even sales dollars.
2. Compute the margin of safety in sales dollars.
3. Compute the degree of operating leverage.
4. Compute the new operating income if sales are 20% higher than expected.