Voltar Company manufactures and sells a telephone answering machine. The company's contribution format income statement for the most recent year is given below: Por Unit Percent of Sales 100M Total $ 1,200,000 300,000 300,000 240,000 60.000 Sales (20,000 units) tess valable expenses Contribution margin tess fixed expenses Operating income 45 I Management is anxious to improve the company's profit performance and has asked for several item of information Required: a) Compute the Company's CM ratio and variable expense ratio. b) Compute the company's break-even point in both units and sales dollars. c) Assume that sales increase by $400,000 next year. If cost behaviour patterns remain unchanged by how much will the company's operating profit income increase? Use the CM ratio to determine your answer. d) Compute the company's margin of safety in both dollars and percentage form. e) Compute the company's degree of operating leverage at the present level of sales