The contribution margin income statement of Sweet Pea Donuts for August 2018 follows: (Click the icon to view the contribution margin income statement.) Sweet Pea sells five dozen plain donuts for every dozen custard-filled donuts. A dozen plain donuts sells for $4.00, with total variable cost of $1.60 per dozen. A dozen custard-filled donuts sells for $7.00, with total variable cost of $2.00 per dozen. Read the requirements. Total 81.000 Contribution Margin Income Statement Plain Filled Net Sales Revenue S 60,000 S 21.000 $ Variable Costs 24,000 8,400 S Contribution Margin 36,000 S 12.600 Fixed Costs 32.400 48,600 48,600 $ 0 Operating Income Requirement 3. Compute Sweet Pea's margin of safety in dollars for August 2018. (The contribution margin Income statement provided should be used to determine any expected results.) Expected sales in dollars Breakeven sales in dollars Margin of safety in dollars S 129,000 $ 81,000 48,000 Requirement 4. Compute the degree of operating leverage for Sweet Pea Donuts. Estimate the new operating income if total sales increase by 40%. (Round the degree of operating leverage to four decimal places and the final answer to the . nearest dollar. Assure the sales mix remains unchanged.) Begin by computing the degree of operating leverage for Sweet Pea Donuts. (Round the degree of operating leverage to four decimal places. X.XX.X.) Contribution margin Operating income Degree of operating leverage S 77,400 $ 28,800 2.6875 + = Estimate the new operating income if total sales increase by 40%. (Round interim calculations to four decimal places and your final answer to the nearest dollar. Assume the sales mix remains unchanged.) The estimated operating income will be