Aldovar Company produces a variety of chemical. One division makes reagents for laboratories. The divisions division projected income statement for the coming year is: Sales (203,000 units @ $70) $14,210,000 Total variable cost 8,120,000 Contribution margin 6,090,000 Total fixed cost 4,945,500 Operating income 1,144,500 1. Compute the contribution margin unit, and calculate the break-even point in units (notes: round answer to the nearest unit.) Calculate the contribution margin ratio and the break-even sales revenue to the nearest dollars. 2. The divisional manager has decided to increase the adverting budget by $250,000. This will increase sales revenue by $1 million. By how much will operating income increase or decrease as a result of this action? 3. Suppose sales revenue exceed the estimated amount on the income statement by $1,500,000. Without preparing a new income statement, by how much are profits underestimated? 4. Compute the margarine of safety based on the ordinary income statement. 5. Compute the degree of operations Leverage a on the ordinary statement. It revenue or 8% greater than expected, what is the percentage increase in operating income? (note: round operating leverage to two decimal places.)