Refer to the original data in question 2. A recession is the economy and DD is expecting a decrease in sales. Required: 1. How many decrease in units sales can the company have to experience before it incurs operating losses? 2. What is the margin of safety (MS) in dollars and percentage? (254) Sales (20,000 units)....................................... $1,200,000 Variable expenses.... 900.000 Contribution margin.... Fixed expenses.. ... 300,000 240,000 60,000 Net operating income.......... $ Required: Compute the company's degree of operating leverage at the present level of sales. Assume the company's sales decrease by 10% next year. By what percentage would you expect net operating income to decrease? Use the degree of operating leverage to obtain your answer. Verify your answer to (b) by preparing a new contribution format income statement showing an 10% decrease in sales. (25%)