2. Saik Co. reports the following data:

Sales $750K

Variable costs $300K

Fixed costs 150K

Determine Saik Co.s operating leverage.

3. Rogan Inc. has sales of $750,000, and the break-even point in sales dollars is $675,000. Determine the companys margin of safety as a percent of current sales.

4. Soft Glow Candle Co. pays 20% of its purchases on account in the month of the pur- chase and 80% in the month following the purchase. If purchases are budgeted to be $15,000 for October and $17,000 for November, what are the budgeted cash payments for purchases on account for November?