Total Unit Cost Sales (35,000 units) $,1750,000 $50 Variable expenses 1,120,000 32 Fixed expenses 585,000 Note: Net operating income= $ 45,000 Required: 1. Calculate the CM ratio. (0.5 mark) 2. Calculate the Break-even in units and in dollars (use the formula or equation method) (1 mark) 3. What is the units to achieve a target profit of $315,000? (1 mark) 4. At the current sales level of 35,000 units, compute the margin of safety in units and in dollars. (1 mark) 5. At the current sales level of 35,000 units, compute the operating leverage (0.5 mark). 6. If sales increase by 10%, what will be the corresponding percentage increase in operating profits? (1 mark) 7. If sales decrease by $ 100,000, what will be the change in operating income? (1 mark)