Pumbaa's degree of operating leverage is: Question 5 Pumbaa's current margin of safety in units is: 3,000 units 1,000 units 4,000 units 5,231 units Use the following to answer questions 4 through 7: Pumbaa Inc. sells a single product. Pumbaa's income statement for the most recent year presented below. Sales (4,000 units) $120,000 Less variable expenses (68,000) Contribution margin 52,000 Less fixed expenses (39,000) Operating income $13,000 Pumbaa's annual breakeven point in units sold is: 3,000 units 1,000 units 5,231 units 4.000 units Question 7 If Pumbaa's sales double to $240,000, annual variable expenses will equal: $136,000 $78,000 $68.000 $107,000