Major League Corporation produces one product, expected sales are 4,000 units. Total fixed costs are $40,000. The unit selling price is $60.00 and the unit variable cost is $35.00.

A) Compute the contribution margin per unit:

BCompute the operating Income

C) Compute the break-even point in units and in sales dollars.

D) What is the Degree of Operating Leverage (DOL=CM/Ol)

E) If sales increase from expected by 15%, what is the expected increase in operating income? (DOL x 20% Ol)