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ABC Company projected operating income for the next fiscal year as follows: ABC Company projected operating income for the next fiscal year as follows: Total

ABC Company projected operating income for the next fiscal year as follows:

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ABC Company projected operating income for the next fiscal year as follows: Total Per Unit Sales 300000 25 Less: Variable Costs 204000 17 Contribution Margin 96000 8 Less: Fixed Costs 81000 Operating Income 15000 Required: Compute the breakeven point in units. Compute the breakeven point in sales. Compute the contribution margin ratio. Compute the increase in operating income if sales revenues increase by 28000 more than expected. Compute the number of units that must be sold for the Company to earn an operating income of: Compute the margin of safety in dollars. Compute the operating leverage. Compute the percentage change in profits if revenues increase by 20%. (Round to two decimal points)

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