n Time Left:0:50:52 Ajeetpal Singh: Attempt 1 Question 4 (10 points) Saved Sweet Dreams Company has provided the following data from the last year: Sales (10,000 units) $ 850,000 Variable expenses 350.000 Contribution margin 500,000 Fixed expenses 350.000 Operating income $ 150.000 Required: 1. Calculate the break-even sales in units. (2 marks) 2. Calculate the margin of safety in units. (2 marks) 3. Calculate the company's degree of operating leverage. Round your answer to one decimal place. (2 marks) 4. Use the operating leverage calculated in part 3 to calculate the percentage increase in operating income if sales increase by 15%. (1 mark) 5. Prepare an incremental analysis to calculate the dollar impact on operating income of having a $80,000 advertising campaign to increase sales by 15%. Should the company proceed with this course of action? Why? (3 marks) Format BIU 1) breakeven sales in units= fixed expense/unit cm = 350000/(85-35) # 7000 units 2) margin of safety in units= margin of safety/unit SP B. acer % & 5 6 8 2 3 O 1/2 O A G H K V M