Sheffield manufactures swivel seats for customized vans. It currently manufactures 22,200 seats per year, which it sells for $694 per seat. It incurs variable costs of $347 per seat and fixed costs of $4,906,200. It is considering automating the upholstery process, which is now largely manual. It estimates that if it does this, its fixed costs will be $5 million, and its variable costs will drop to $311 per seat. (a) Your answer is correct. Prepare a variable-costing income statement based on current activity. Sheffield Income Statement-Variable Costing Sales $ 15406800 Variable costs 7703400 i Contribution margin v 7703400 Fixed costs 4906200 i Net income $ 2797200 Your answer is partially correct. Calculate the contribution margin ratio, break-even point in dollars, margin of safety ratio, and degree of operating leverage based on current activity. (Round margin of safety ratio to 2 decimal places, e.g. 2.75, degree of operating leverage to 3 decimal places, e.g. 2.750 and all other answers to 0 decimal places, e.g. 25% or $5,275.) Contribution margin ratio 50 % Break-even point $ 9812400 Margin of safety ratio 36 % Degree of operating leverage 38.91