Essex Company manufactures and sells motorbikes. The company's contribution format income statement for the most recent year is given below: Total Per Unit Percentage Sales (20000 units) 1,100,000 55 100% Variable Expense 660,000 33 ? Contribution Margin 440,000 22 ? Fixed Expense 95,000 Net Operating Income 345,000 Management is anxious to increase the company's profit and has asked for an analysis of a number of items. Instructions: a. Compute the company's break-even point in both units and sales dollars. b. Compute the company's Operating Leverage c. Assume that sales increase by $600,000 next year. If cost behavior patterns remain unchanged, by how much will the company's net operating income increase