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1. Determine the break-even point. 2. Compute the margin of safety and explain its significance. 3. Compute the degree of operating leveroge at a particular level of sales and explain how it can be used to predict changes in net operating income. 20 Break-even in unit sales 21 Break-even in dollar sales units 3. Compute the margin of safcty 24 Margin of safety in dollars 25 Margin of safety pereentage 27 4. Compute the degree of operating leverage 28 Sales 29 Variable expenses 30 Contribution margin 31 Fixed expenses 32 Net operating income 33 34 Degree of operating leverage 35 36 37 38 READY Attempt(s)