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Zero Company is planning the next year of operations and has just compiled the following Contribution Margin Income Statement: CM Income Statement Units Sold Per

Zero Company is planning the next year of operations and has just compiled the following Contribution Margin Income Statement:

CM Income Statement

Units Sold Per Unit Total

Sales 2,000.00 $600.00 $1,200,000.00

Variable Cost 2,000.00 $100.00 $200,000.00

Contribution Margin $1,000,000.00

Less Fixed Costs $900,000.00

Total Income Before Tax $100,000.00

1. Based on this information, Zero Company's leverage factor is __________

2. Based on the information in Question 1, if the company has a 9% increase in sales, its income before tax will increase by $_____________.

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