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 $23.00) Total variable cost Contribution margin $1.242,000. 645,840 $590.160 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 574,000 $22,000 4. Compute the new operating income if sales are 20% higher than expected