Question 3 (10 points) Saved Pride Products Co reports the following information for the most recent year of operations. Sales Variable expenses $ 170,000 64,000 $ 106,000 76,800 $ 29,200 Fixed expenses Operating income The company has no beginning or ending inventories, and produced and sold 20,000 units during the year. Required: (Round answers to two decimal places) 1. Calculate the operating leverage. (2 marks) 2. Using operating leverage, calculate the percentage increase in operating income if sales increase by $32,000. (2 marks) 3. Calculate the total sales dollars needed to attain a target profit of $50,000. (2 marks) 4. The owner wants to hire a full-time person to do marketing and sales. The additional yearly salary would be $47,000 and the owner projects that sales will increase by 40%. Prepare an incremental analysis (do not prepare an income statement) and give your recommendation. (4 marks)