Change all of the numbers in the data area of your worksheet so that it looks like this:

Unit sales: 50000

selling price per unit: $50

Variable expenses per unit: $30

fixed expenses: 900,000

If your formulas are correct, you should get the correct answers to the following questions.

(a) What is the break-even in dollar sales?

(b) What is the margin of safety percentage?

(c) What is the degree of operating leverage? (Round your answer to 2 decimal places.)

3. Using the degree of operating leverage and without changing anything in your worksheet, calculate the percentage change in net operating income if unit sales increase by 20%.