Break-Even in Units, Target Income, New Unit Variable Cost, Degree of Operating Leverage, Percent Change in Operating Income Required: 1. How many Tuff-Pups must be sold to break even? units 2. If Readan wants to earn $65,000 in profit, how many Turf-Pups must be sold? units Prepare a varlable-costing income statement to verify your answer. 4. What is Reagan's current contribution margin and operating income? Current contribution margin Current operating income Caltulate the degree of operating leverage. Round your answer to three decimal places. What would the new total operating income for next year be? Round your answer to the nearest dollar. analysis will help Reagan understand the ureak-even point and units needed to earn a target profit. analysis helps Reagan to understand what happens when variables are changed. analysis would be used if Reagan determines that a target profit must be earned and then uses the data to change price, variatle cost, and fixed cost to actieve that proft. Data analytics would be used in Requirement 3 as Reagan decides to lower the break-even point and uses the analysis to determine why the breakeven is higher than desired