Refer to the income statements in requirement 1 above. For both current operations and the proposed new operations, compute (a) the degree of operating leverage. (b) the break even point in dollars, and (c) the margin of safety in both dollar and percentage terms. Present Proposed a Degree of operating leverage b. Break-even point in dollars C Margin of safety in dollars Margin of safety in percentage 5 % 3-6. Calculate the unit sales per month at which Frieden management will be indifferent between doing the major upgrade to the manufacturing equipment and not doing the upgrade per month 3-b. Based on the above analysis should Frieden proceed with the major upgrade? 3-L. Why or why not? In this case, the indifference point of sales at which point the upgarde the operating income. So Frieden's the current level have an impact on proceed to upgrade 4-a. Refer to the original data. Instead of doing the major upgrade to the equipment management is considering introducing a new advertising campaign that will increase fixed expenses by $12.000 per month Management believes the new advertisements will increase monthly unit sales by 10%. In this case what would be imapact on operating income. o search