Oates Tannery processes cow skins into leather soles. The unit selling price is $32, the unit variable cost is $12.80, and fixed costs are $320,000. Part A: What are the break-even sales in dollars? Part B: At the end of its fifth year of operation, Oates Tannery experienced the following: Revenue Variable expenses $1,200,000 480,000 Contribution Margin 720,000 Fixed Expenses 320,000 $ 400,000 Net income 1. Calculate Oates Tannery's operating leverage 2. Using the degree of operating leverage, estimate the impact on net income of a 10% decrease in sales. 3. Calculate Oates Tannery's margin of safety in dollars.