Contribution Margin, Break-Even Units, Break-Even Sales, Margin of safety, Degree of Operating leverage Aldovar Company produces a variety of chemicals. One division makes reagents for laboratories. The division's projected income statement for the coming year is: Sales (203,000 units @ $70) $14,210,000 Total variable cost 8,120,000 Contribution margin $6,090,000 Total fixed cost 4,945,500 Operating income $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 30 Break-even point in units 164,850 Contribution margin ratio 42.9 x Break-even sales revenue $11,530,000 X 2. The divisional manager has decided to increase the advertising budget by $250,000. This will increase sales revenues by $1 million. By how