Feedback 2. What is the expected contribution margin ratio? 60 % 3. Determine the break-even sales in units and dollars. Units units Dollars $1,920,000 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? $1,920,000 5. What is the expected margin of safety in dollars and as a percentage of sales? Dollars Percentage (If required, round the percent to one decimal place, e.g. 15.4%.) % 6. Determine the operating leverage. Feedback Check My Work 2. Sales minus variable cost equals contribution margin. Contribution margin divided by sales equals contribu eBook Print Item Sales 2,880,000 Cost of goods sold: Direct materials 600,000 Direct labor 360,000 Factory overhead 422,000 Total cost of goods sold 1,382,000 Gross profit 1,498,000 Expenses: Selling expenses: Sales salaries and commissions 388,000 Advertising 116,000 Travel 4,000 Miscellaneous selling expense 14,300 Total selling expenses 522,300 Administrative expenses: Office and officers' salaries 325,000 Supplies 54,000 Miscellaneous administrative expense 20,700 Total administrative expenses 399,700 Total expenses 922,000 Operating income 576,000 Check My Work All work saved. Estimated Fixed Cost Estimated Variable Cost (per unit sold) Production costs: Direct materials $50.00 Direct labor 30.00 Factory overhead $350,000 6.00 Selling expenses: