ACC203 - Test Chapter 5 & 6 19. Stone Leikder Company has provided you the following data for the most recent year: net operating income $30,000; fixed expenses = $90,000; sales - $200,000; and CM ratio -60%. What is the company margin of safety in dollars? A. $50,000 B. $30,000 C. $150,000 D. $80,000 20. The January contribution format income statement of Preston Kelly Corporation appears below: Sales - $36,300; Variable expenses - $23,100; Contribution margin - $13,200; fixed expenses $10,000 and net operating income $3,200. The degree of operating leverage is closest to: A. 0.09 B. 11.34 C. 4.13 D. 0.24