Croftsman Company recorded the following information for its main product:

Selling price per unit

$

250

Costs per unit (25,000 units produced and sold):

Direct material

30

Direct labour

15

Variable overhead

20

Fixed overhead

55

Sales Commission

7.5

% of sales

Required:

1.

Compute the contribution margin ratio and break-even sales.

Contribution margin ratio ..................

Breakeven sales .........................

2.

What is the margin of safety in dollars and units, and the degree of operating leverage? (Round "Degree of operating leverage" to 2 decimal places and the rest to the nearest whole number.)

	Dollars Units Margin of Safety ............... .....................

Degree of operating leverage .............. ...................