Basic CVP Concepts Katayama Company produces a variety of products. One division makes neoprene wetsuits. The division's projected income statement for the coming year is as follows: Sales (65,000 units) Less: Variable expenses $15,600,000 8,736,000 $6,864,000 4,012,000 $2,852,000 Contribution margin Less: Fixed expenses Operating income 3. Suppose sales revenues exceed the estimated amount on the income statement by $612,000. Without preparing a new income statement, determine by how much profits are underestimated. 4. How many units must be sold to earn an after-tax profit of $1.254 milion? Assume a tax rate of 34 percent. Round your answer to the nearest whole unit. units 5. Compute the margin of safety in dollars based on the given income statement. Round your answer to the nearest dollar 6. Compute the operating leverage based on the given income statement. Round your answer to three decimal places. Use the rounded answer in the subsequent computation If sales revenues are 20 percent greater than expected, what is the percentage increase in profits? Round the percentage to two declmat places