Question 2: Pringle Company distributes a single product, the company's sale and expenses for a recent month follow: Total Per Unite Sales 225,000 75 Variable expenses 135,000 45 Contribution margin .. 90,000 30 Fixed Expenses 75,000 Net Operating Income 15,000 The company is selling 3,000 units per month. Required: 5. Refer to the original data; management is considering using higher-quality components that would increase the variable cost by $ 2 per unit. The marketing manager believes that the higher quality product would increase sales by 10%. Should the higher quality components should be used? 6. What is the margin of safety in percentage? 7. What is a degree of operation leverage? 8. Estimate the impact on net operating income of a 6% increase in sales