ABC Company's most recent contribution format income statement is shown below: Total Per Unit Sales (20,000 units) $300,000 $15.00 Less variable expenses 180,000 $ 9.00 Contribution margin 120,000 $6.00 Less fixed expenses 70,000 Net operating income $50,000 Required 1: Prepare a new contribution format income statement under each of the following conditions. (a) Sales volume increases by 15%. (b) Selling price decreases by $1.5 per unit, and sales volume increases by 25%. (c) Selling price increases by $1.5 per unit, fixed expenses increases by $20,000 and the sales volume decreases by 5%. (d) Selling price increases by 12%, variable expense increases by 60% per unit and sales volume decreases by 10 Required 2: Calculate the amount of Break-even sales (in amount) and (in unit) Required 3. What is the amount of Margin of safety (in amount) and target sales for earning $ 190,000? Required 4: What is Degree of operating leverage of the company and what will be the effect on income if Sales increases by 12% and if sales decrease to 85%