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

Selling price per unit	$	370
Costs per unit (at the normal capacity of 39,900 units):
Direct material		135
Direct labour		74
Variable overhead		54
Fixed overhead		54
Sales Commission		10.0		% of sales

Required:

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

2. What is the margin of safety in dollars and units, and the degree of operating leverage? (Round "Degree of operating leverage" to 2 decimal places and the rest to the nearest whole number.)