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Medina Company produces a single product. The projected income statement for the coming year is as follows Sales (54,000 units @ $19.00) $1,026,000 Total variable cost 482,220 Contribution margin $ 543,780 Total fixed cost 523,640 Operating income $ 20,140 Required: 1. Compute the break-even sales dollars. 988,000 2. Compute the margin of safety in sales dollars. 927,200 3. Compute the degree of operating leverage. 27 4. Compute the new operating income if sales are 20% higher than expected. $