FRIEDEN COMPANY Contribution Margin Income Statement Present Proposed Amount Per Unit % Amount Per Unit % Sales $ 900,000$ 630,000 900,000 S 30 100 30 100 Variable expenses 70 21 360,000 12 40 Contribution margin 270,000 30 $ 540,000 18 60 Flixed expenses 216,000 486.000 Operating income 54,000 54,000 2. Refer to the income statements in requirement 1 above. For both current operations and the proposed new operations, compute (a) the degree of operating leverage, (b) the break-even polnt in dollars, and (c) the margin of safety in both dollar and percentage terms. Present Proposed a. Degree of operating leverage b. Break-even point in dollars C Margin of safety in dollars Margin of safety in percentage %