Problem 3. Iron Manufactures decorative iron railings. In Preparing for next years operations, management has developed the following estimates:

	Total	Per Unit
Sales (40,000 units)	$ 2,000,000	$ 53
Direct Materials	$ 210,000	$ 12
Direct Labor (Variable)	$ 50,000	$ 4
Manufacturing Overhead:
Variable	$ 60,000	$ 6
Fixed	$ 55,000	$ 6
Selling & Administrative:
Variable	$ 95,000	$ 8
Fixed	$ 40,000	$ 3.50

5- Margin of safety percentage?

6- Margin of safety in amount?

7- If the net income is $ 830,000, what is the degree of the operating leverage?

Subject: MANAGERIAL ACCOUNTING Note: Please Write from a Computer or Laptop (easy to write)