The company's annual fixed costs are $600,000. a. Compute the units of each product (assuming a constant sales mix) that the company must sell to break-even. b. Compute the of net operating income for the units of each product obtained in the previous section. Exercise 2 (30 points) The company's information for the most recent year is given below: 39411 a. Compute the company's degree of operating leverage. b. Assume that through a more intense effort by the sales staff, the company's sales increase by 8% next year. What would the expected net operating income be after this increase in sales? Use the degree of operating leverage to obtain your answer. c. Verify your answer to the previous section by preparing a contribution format income statement showing an 8% increase in sales