Name: Chapter 21 355 EXERCISE 21-3 Instructions: In each of the following cases, use the appropriate formula (margin of safety or operating leverage ratio) to determine the answer. (1) Sales are $2,000,000. Break-even sales would be $1,700,000. The margin of safety as a percentage of sales is ...... % (2) Sales are $150,000. Break-even sales would be $100,000. The margin of safety as a percentage of sales is ..... % (3) Operating income is $175,000. The contribution margin is $300,000. The operating leverage is (4) Sales are $700,000. Variable costs are $300,000. Operating income is $200,000. The operating leverage is