Parker Company has provided the following data for the most recent year: net operating income, $26,650; fixed expense, $91,650; sales, $182,000; and CM ratio, 65%. The companys margin of safety in dollars is:

a.) 41,000

b.)141,000

If sales increase from $480,000 to $543,840, and if the degree of operating leverage is 6.80, net operating income should increase by: (Do not round your intermediate calculations and round your final answer to 2 decimal places.)

a.) 90.44%.

b.) 13.30%.