Mama Corporation is a distributor of sun umbrella used at resort hotel. The data are as follows: Selling Price Variable Expenses Fixed Expenses Unit sales Required: 25 per unit 15 per unit 8,500 per month 1,000 units per month 1. Compute the margin of safety in terms of units 2. Compute the margin of safety in terms of sales LEARNING ACTIVITY 6: OPERATING LEVERAGE F Company installs home theater system. The company data are as follows: Selling Price Variable Expenses Contribution Margin Fixed Expenses Net Income Required: 120,000 84,000 36,000 24,000 12,000 1. Compute the degree of operating leverage 2. If there will be an increase of 10% in sales, estimate the impact in the net income.