b. 20. In 2018, Loco Company's annual variable expenses were $30,000. Total operating income in 2018 was $100,000 and 10,000 units were sold. The contribution margin per unit was $25.00. The firm's fixed expenses were: $380,000 $250,000 c. $350,000 $150,000 21. The operating leverage factor for a firm was 3.0. If revenue is expected to increase 30%, operating income should increase: 10% 45% 300% 90% 22. Gardner Furniture Co, produces two kinds of chairs: an oak chair and an elm chair. The oak chair sells for $60.00 and the elm chair sells for $70.00. The variable expenses are as follows: Oak Elm Variable production cost per unit: $30.00 $35.00 Variable operating expense per unit: $ 6.00 $ 5.00 Fixed expenses are $151,200 per year. The firm currently sells 4 oak chairs for each elm chair. The break-even point in units for the current sales mix is: 11,340 5,600 6,000 2,326 a. d