Management is anxious to improve the company's profit performance and has asked for an analysis of a number of items. Required: 1. Compute the company's CM ratio and variable expense ratio. 2. Compute the company's break-even point in both units and sales dollars. Use the equation method. 5. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. 6. a. Compute the company's degree of operating leverage at the present level of sales. c. Verify your answer to part (b) by preparing a new income statement showing an 8% increase in sales. The sales manager estimates that the higher-quality antenna would increase annual sales by at least 20%. a. Assuming that changes are made as described above, prepare a projected income statement for next year. Show data on total, per-unit, and percentage bases. b. Compute the company's new break-even point in both units and dollars of sales. Use the contribution margin method