Margin of Safety and Operating Leverage Medina Company produces a single product. The projected income statement for the coming year is as follows: Sales (64,000 units @ $27.00) $1,728,000 Total variable cost 898,560 Contribution margin $ 829,440 Total fixed cost 803,520 Operating income $ 25,920 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