In August, Rogue Company sold 350,000 units at $1.25 each. Fixed cost amounted to $25,000 and variable cost are $0.90 per unit produced. Answer the following questions for Rogue Company showing all your work and calculations:

1. Prepare an Income Statement for August that shows the contribution margin.
2. Compute the break-even point in both sales and units. Use formulas, do make another income statement.
3. Compute the degree of operating leverage.
4. Sales are estimated to increase by 10% in December. What will be the expected sales in dollars? You must use the operating leverage to calculate this. Do not make another income statement.