Cutlass Company sells a single product. The companys controller prepared the following budgeted income statement for the coming year:

Sales Less: Total variable cost Contribution margin Less: Total fixed cost Operating Income

Total $140,000 105,000 35,000 27,000 $ 8,000

What would be additional operating income if Cutlasss sales were $60,000 higher than the budgeted level of sales?

Group of answer choices

A. $3,429

B. $24,000

C. $18,000

D. $15,000

What is the margin of safety in sales dollars at Cutlasss budgeted level of sales?

Group of answer choices

A. $36,000

B.$20,000

C. $108,000

D. $32,000

What is the degree of operating leverage at Cutlasss budgeted level of sales (Round to the two decimal places if necessary)?

Group of answer choices

A. 4.00

B. 0.25

C. 0.23

D. 4.38

What level of sales revenue would have to be generated to earn a target profit of $16,000?

Group of answer choices

A. $172,000

B. $280,000

C. $124,000

D. $200,000