Contribution Margin, Break-Even Units Break-even Sales, Margin of Safety Degree of Operating Leverage W Aldovar Company produces a variety of chemicals. One division makes reagents for laboratones. The division's projected income statement for the coming year : $70) Sales (203,000 units Total variable cost Contribution margin Total fixed cost Operating income $14,210.000 8,120.000 N $6.090.000 4.945.500 $1.144,500 Required: 1. Compute the contribution margin per unit, and calculate the break-even point in units. Calculate the contribution margin ratio and use it to calculate the break-even sales revenue. (Note: Round contribution margin ratio to four significant digits, and round the break-even sales revenue to the nearest dollar.) Unit contribution margin Break-even point in units Contribution margin ratio Break-even sales revenues 2. The divisional manager has decided to increase the advertising budget by $250,000. This will increase sales revenues by $1 million. By how much will operating income increase or decrease as a result of this action? Use your answers from part 1 to determine the amount. Increase 3. Suppose sales revenues exceed the estimated amount on the income statement by $1,500,000. Without preparing a new income statement, by how much are profits underestimated? Use your answers from part 1 to determine the amount. S 4. Compute the margin of safety based on the original income statement. Round your answer to the nearest dollar 5. Compute the degree of operating leverage based on the original income statement. Round your answer to two decimal places. Ir sales revenues are 8% greater than expected, what is the percentage increase in operating income? Round your answer to four decimal places before converting to a percentage. For example, 0.88349 would be rounded to 0.8835 and entered as 88.35%. %