Sophie Inc. is showing the following expected results for the sale of her dance book:

	Expected Sales
Units	3,000
Sales	$120,000
Total variable costs	$72,000
Contribution margin	$48,000
Total fixed costs	$9,000
Operating income	$39,000

Using the above information answer the following questions.

What is the contribution margin ratio?

HINT: remember the entry rules for percentages.

What is the break-even in sales dollars?

What is the margin of safety in sales dollars?

What is the degree of operating leverage?

Entry rules: enter your answer rounded to 2 decimal places.

If sales increase by 15%, by what percentage will the operating income increase?

HINT: remember the entry rules for percentages AND remember to use your rounded answer for the degree of operating leverage that you just entered.