Assume the following information:

	Amount
Selling price	$ 30
Variable expense per unit	$ 12
Fixed expenses	$ 16,500	per month
Unit sales	2,170	per month

The degree of operating leverage is closest to:

Multiple Choice

• 0.23.

• 1.73.

• 0.35.

• 1.96.

Assume the following information:

	Amount	Per Unit
Sales	$ 300,000	$ 40
Variable expenses	112,500	15
Contribution margin	187,500	$ 25
Fixed expenses	120,000
Net operating income	$ 67,500

The dollar sales to break-even is:

Multiple Choice

• $150,000.

• $192,000.

• $320,000.

• $67,500.

Assume the following (1) Total sales = $178,000 (2) the contribution margin ratio = 40%, and (3) total fixed expenses = $45,000. Given these three assumptions, the margin of safety is:

Multiple Choice

• $65,500.

• $27,000.

• $105,000.

• $63,000.