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Margin of Safety and Operating Leverage Medina Company produces a single product. The projected income statement for the coming year is as follows: Sales (56,000

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Margin of Safety and Operating Leverage Medina Company produces a single product. The projected income statement for the coming year is as follows: Sales (56,000 units $19.00) $1,064,000 Total variable cost 680,960 Contribution margin $ 383,040 Total fixed cost 369,360 Operating income $ 13,680 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. Save and

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