Darringer Products manufactures recreational equipment. One of the company's products, a skateboard sells for $30. The skateboards are manufactured in an antiquated plant that relies heavily on direct labor workers. Thus, variable costs are high, totaling $18.00 per skateboard of which 60% is direct labor cost. Over the past year the company sold 50,000 skateboards, with the following operating results Sales (50,000 skateboards) Variable expenses $1,500,000 900,000 Contribution margin Fixed expenses 600,000 480,000 Net operating income $ 120,000 Management is anxious to maintain and perhaps even improve its present level of income from the skateboards Required 1a. Compute the CM ratio and the break-even point in skateboards. (Round your contribution margin answer to the nearest whole percent. Round up your break even answer to the nearest whole number.) Contribution margin ratio Unit sales to break-even point skateboards 1b. Compute the degree of operating leverage at last years level of sales. (Round your answer to 2 decimal places.) Degree of operating leverage