I am struggling with this concept

3. Compute the degree of operating leverage at the current level of sales. I). The president expects sales to increase by 13% next year. By how much should operating income increase? i. The company estimates that sales will increase by $53,000 during the coming year due to increased demand. By how much should operating income increase? L. Assume that the operating results for last year were as follows: Sales $860,000 Variable expenses 440,000 Contribution 420,000 margin Fixed expenses 336,000 Operating income 35 84,000 Klein Company distributes a high-quality bird feeder that sells for $35 per unit. Variable costs are $14 per unit, and fixed costs total $336,000 annually. Required: Answer the following independent questions: 1. What is the product's CM ratio? % 2. Use the CM ratio to determine the break-even point in sales dollars