EXERCISE $8-11$

Calculating the CM Ratio, Margin of Safety, and Degree of Operating Leverage $[$LO$1-$ CC$2$;

LO$2-$ CC$8,10]$

Li$-$Wei Inc. recorded the following information for its main product:

Selling price per unit

Costs per unit $($at the normal capacity of $30,000$ units$)$:

Required:

Compute the contribution margin ratio and break$-$even sales.

What is the margin of safety in dollars and units, and the degree of operating leverage?