During 2022 Clear Blue Electronics had sales of $2,530,000 (25,300 units), total variable expenses of $1,265,000, and total fixed expenses of $815,000.

Requirement 1: (10 Mks) 1. What is the company's CM ratio? Requirement 2: (10 Mks) 2. Using the CM ratio, calculate the break-even level of sales in dollars. Requirement 3: (15 Mks) 3. What is the break-even level of sales in units? Requirement 4: (15 Mks) 4. Estimate the change in the company's operating income if it increased its total sales by $615,000.