1.

2.

The Ronald Company reported the following information for the past year: Sales $ 156,250 Variable expenses 75,000 contribution margin 81,250 Fixed expenses 91,000 Net operating loss $ (9,750) The breakeven in sales revenue would be: O $136,000 $8,500 $200,000 $175,000 Kyle Inc. sells tennis rackets and has the following operating information for the past year: Sales $ 150,000 Variable expenses 90,000 Contribution margin 60,000 Fixed expenses 36,000 NOI $ 24,000 The degree of operating leverage for Kyle is: 2.5 6.25 4.17 3.125 3.75