If a business had sales of $3,895,000 and a margin of safety of 20%, the break-even point was

$4,674,000

$3,116,000

$7,011,000

$779,000

If variable costs per unit decreased because of a decrease in utility rates, the break-even point would

increase or decrease, depending upon the percentage increase in utility rates

increase

remain the same

decrease

If sales are $305,000, variable costs are 75% of sales, and operating income is $40,000, what is the operating leverage?

0.0

5.7

1.4

1.9