The Bruggs & Strutton Company manufactures an engine for carpet cleaners called the "Snooper." Budgeted cost and revenue data for the "Snooper" are given below, based on sales of 40,000 units.

Sales	$1,600,000
Less: Cost of goods sold	1,120,000
Gross margin	$ 480,000
Less: Operating expenses	100,000
Operating income	$ 380,000

Cost of goods sold consists of $800,000 of variable costs and $320,000 of fixed costs. Operating expenses consist of $40,000 of variable costs and $60,000 of fixed costs.

Required: (each worth 2 points)

Calculate the following: Show your work

(a) unit contribution margin

(b) the contribution margin ratio

(c) the break-even point in units

(d) the breakeven point in sales dollars

(e) the number of units that must be sold to increase operating income by 10%

(f) margin of safety percentage at 40,000 units

(g) operating leverage factor at 40,000 units

(h) If sales of the Snooper were to increase by 10%, by what percentage would operating income increase?