The Yucki Candy Co. makes and sells boxes of chocolate candy. Yucki has fixed expenses of $195,000 each month plus variable expenses of $6.00 per box of candy. Yucki sells each box of candy for $10.00.

• Compute the contribution margin of each box of candy.

• Compute the number of boxes of candy that Yucki must sell each month to break even. Round up to the nearest whole box.

• Compute the contribution margin ratio for a box of candy

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• Compute the dollar amount of monthly sales Yucki needs to earn $2500,000 in profit. (Round the contribution margin ratio to four decimal places. Round sales up to the nearest dollar.)

• Prepare Yuckis contribution margin income statement for June for sales of 275,000 boxes of candy.

• What is the degree of leverage for June sales of 275,000 boxes of candy? (Carry answer out to four decimal places.)

• What is Junes margin of safety (in dollars and cents)?

• By what percentage will operating income change if Junes sales volume is 25% higher? (Round to two decimal places.)

• Prove your answer by comparing the difference in operating income after the change with the operating income before the change.