What is the margin of safety in packages?

Note: Round number of units to the next highest whole units $($for example, round $4\mathrm{.}1$ units to $5$ units$).$

$x$ packages

b$.$ What is the degree of operating leverage?

Note: Round your answer to the nearest two decimal places $($for example, round $4\mathrm{.}855$ to $4\mathrm{.}86).$

c$.$ If the company can increase sales in packages by $30$ percent, what percentage increase will it experience in income?

Note: Round your answer to the nearest whole percentage point.

$\%$

Prove your answer with a contribution income statement.

Note: Do not use negative signs with your answers.

Dollar change in net income $

Percentage change in net income

$\%$

d$.$ If the company increases advertising by $$65,920,$ sales in packages will increase by $15$ percent. What will be the new break$-$even point in sales dollars? $

What is the new degree of operating leverage?

Note: Round your answer to the nearest two decimal places $($for example, round $4\mathrm{.}855$ to $4\mathrm{.}86).$

Titan Foods makes a high$-$energy frozen meal. The selling price per package is $$7\mathrm{.}20,$ and variable cost of production is $$4\mathrm{.}32.$ Total fixed cost per year is $$506,560.$ The company is currently selling $200,000$

packages per year.

a$.$ What is the margin of safety in packages?

Note: Round number of units to the next highest whole units $($for example, round $4\mathrm{.}1$ units to $5$ units$).$

packages

b$.$ What is the degree of operating leverage?

Note: Round your answer to the nearest two decimal places $($for example, round $4\mathrm{.}855$ to $4\mathrm{.}86).$

c$.$ If the company can increase sales in packages by $30$ percent, what percentage increase will it experience in income?

Note: Round your answer to the nearest whole percentage point.

$\%$

Prove your answer with a contribution income statement.

Note: Do not use negative signs with your answers.

Dollar change in net income $

Percentage change in net income

d$.$ If the company increases advertising by $$65,920,$ sales in packages will increase by $15$ percent. What will be the new break$-$even point in sales dollars? $ What is the new degree of operating leverage?