1.

Serfass Corporation's contribution format income statement for July appears below:

Sales	$	371,200
Variable expenses		185,600
Contribution margin		185,600
Fixed expenses		83,520
Net operating income	$	102,080

The degree of operating leverage is closest to:

Multiple Choice

0.28

0.55

2.00

1.82

2.

Majid Corporation sells a product for $135 per unit. The product's current sales are 41,100 units and its break-even sales are 32,115 units.

What is the margin of safety in dollars?

Multiple Choice

$3,387,722

$5,548,500

$4,335,525

$1,212,975

3.

Compute the amount of raw materials used during November if $39,000 of raw materials were purchased during the month and if the inventories were as follows:

Inventories	Balance November 1			Balance November 30
Raw materials	$	10,600		$	5,800
Work in process	$	7,800		$	9,300
Finished goods	$	11,800		$	13,800

Multiple Choice

$40,500

$40,300

$37,800

$43,800