1. The margin of safety in dollars is calculated by. a. subtracting total cost from the actual sales. b. subtracting the contribution margin from the actual sales. c. subtracting the break-even sales from the actual sales. d. subtracting the fixed cost from the actual sales. 2. Lauren Company plans to sell 3,000 units of a product at $500 each. For the product, unit variable cost is s3s0 and break-even units are 700. Calculate the margin of safety for Lauren in terms of the number of units. a. 2,000 units b, 2,100 units c. 2,200 units d. 2,300 units 3. Young Manufacturing Company plans to sell 600 units at $500 each in the following year. The data Variable cost Total fixed cost Operating Income Calculate the degree of operating leverage. on costs is as follows $400 $47,000 $30,000