Ch. 5 Problem Part 2/3 FILE HOME Harry's Hideaway sells tasty donuts with sprinkles. Each donut sells for $2.00. The company's contribution margin income statement for September is shown below. Undo Clipboard Harry's Hideaway A1 Contribution Margin Income Statement For the Month of May 2020 200 Sales revenue $100,000 Variable expenses: COGS $40,000 Marketing expense $12,500 General and administrative expense $7,500 ($60,000) Contribution margin $40,000 Fixed expenses: Marketing expense A $16,000 General and administrative expense $6,000 ($22,000) $18,000 Operating Income Answer the following questions: (Please round all "per unit" answers to 2 Powered decimal places.) Show your work here, including calculations or spreadsheet data, for partial credit (optional). MacBook Pro DIIUndo Clipboar The company is thinking of automating the donut making process. The automation A1 will reduce variable costs per unit by 30%, but increase fixed costs by 80%. 200 How many donuts does Harry's Hideaway need to sell to earn the same operating income as it did before automating? (6 points) Assume the same number of donuts are sold after automation as were sold before automation. What is the the company's degree of operating leverage after choosing to automate? (4 points). Powered -+ MacBook Pro