Margin of Safety and Operating Leverage Medina Company produces a single product. The projected income statement for the coming year is as follows: Sales (68,000 units $27.00) Total variable cost $1,836,000 697,680 $1,138,320 1,104,840 $33,480 Contribution margin Total fixed cost Operating income Required 1. Compute the break-even sales dollars. 2. Compute the margin of safety in sales dollars. 3. Compute the degree of operating leverage 4- Compute the new operating income if sales are 20% higher than expected