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 $460,000 Required: 1 a. Compute the Degree of Operating Leverage. b. If sales are expected to increase by 8%, what would the new operating income be? c. Compute the contribution margin ratio. d. Based on the contribution margin ratio, compute the breakeven sales in dollars