Margin of Safety and Operating Leverage Medina Company produces a single product. The projected income statement for the coming year is as follows: Sales (54,000 units@ exist21.00) exist1, 134,000 Total variable cost 317, 520 Contribution margin exist816, 480 Total fixed cost 786, 240 Operating income exist30, 240 Required: 1. Compute the break-even sales dollars. exist 2. Compute the margin of safety in sales dollars. exist 3. Compute the degree of operating leverage. 4. Compute the new operating income if sales are 20% higher than expected. exist