2. CADS Manufacturing company prepared the following contribution margin income statement based on a normal capacity production of 160,000 units: Sales Variable costs Contribution Margin Fixed Costs Operating Income $2,560,000 1.180.000 1,380,000 920,000 Required: Compute the Degree of Operating Leverage. If sales are expected to increase by 8%, what would the new operating income be? Compute the contribution margin ratio. Based on the contribution margin ratio, compute the breakeven sales in dollars. a. b. c. d