Oak Hammock Company prepared the following income statement for its $15,000$ bucket sales for the last quarter of $2023$:

Pro Format Income Statement $$ Quarter $4,2023$

Sales $ $120,000\mathrm{.}00$

COGS $(40\%$ variable and $60\%$ fixed$)$ $ $75,000\mathrm{.}00$

Gross Profit $ $45,000\mathrm{.}00$

S&A expenses:

Sales commissions $(10\%$ of sales as a network sales agents$)$ $ $12,000\mathrm{.}00$

Fixed selling expense $ $4,000\mathrm{.}00$

Fixed administrative expense $ $3,000\mathrm{.}00$

Total S&A expenses $ $19,000\mathrm{.}00$

Operating Income before taxes $ $26,000\mathrm{.}00$

Income taxes $(40\%)$ $ $10,400\mathrm{.}00$

Operating Income after taxes $ $15,600\mathrm{.}00$

Tasks: Answer the following questions:

a$)$ Calculate the contribution margin ratio.

b$)$ Calculate the total fixed costs.

c$)$ Calculate the break$-$even point in units.

d$)$ Calculate the break$-$even point sales dollars.

e$)$ Calculate how much sales dollars the company need to generate to earn a target operating income after taxes of $$31,200.$

f$)$ Assume that the company expects to sell $20,000$ buckets. What is the operating leverage?

g$)$ Using the operating leverage, if sales increase by $10\%$ of the expected sales, by how much will operating income increase?

h$)$ Using the operating leverage, if sales decrease by $15\%$ of the expected sales, what is the projected operating income?