Margin of Safety

Melton Inc. has sales of $1,750,000, and the break-even point in sales dollars is $875,000.

Determine the company's margin of safety as a percent of current sales. Enter your answer as a whole number. %

Operating Leverage

Westminster Co. reports the following data:

Sales $875,000 Variable costs 425,000 Contribution margin $450,000 Fixed costs 150,000 Income from operations $300,000

Determine Westminster Co.'s operating leverage. Round your answer to one decimal place.