Degree of Operating Leverage cost equals $$78,000($includes fixed factory overhead and fixed selling and administrative expense$).$ Operating income at $3,500$ units sold is $$58,500.$

Required:

Calculate the degree of operating leverage. Note: Round answer to one decimal place.Margin of Safety cost equals $$78,000($includes fixed factory overhead and fixed selling and administrative expense$).$ Break$-$even units equal $2,000.$

Required:

Calculate the margin of safety in terms of the number of units. units

Calculate the margin of safety in terms of sales revenue.