Problem 3. Edil Company produces and sells a single product. The costs and selling prices on a per-unit basis are as follows. Selling Price Materials Labor Variable overhead Fixed Overhead Variable Selling and Administrative 120 35 15 10 10 20 5 Fixed selling and administrative The above per-unit figures are computed based on the company's normal capacity of 20,000 units. Required: 1. Margin of safety ratio 2. Degree of operating leverage Problem 4. A product has a selling price of P20 and unit variable cost of P14. The effect of a P2 per unit increase in variable cost is to increase the break-even level capacity by 1. Compute in units and ratio.