Margin of Safety and Operating Leverage Medina Company produces a single product. The projected income statement for the coming year is as follows: Sales (58,000 units @ $15.00) $870,000 Total variable cost 408,900 Contribution margin $ 461,100 Total fixed cost 445,200 Operating income $ 15,900 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 higher than expected