Question:

David produces "For Sale" signs for property sales and shows the follow data for the past year:

Sales	$ 1,950
Less: Variable costs	$ 1,200
Contribution margin	$ 750
Less: Fixed costs	$ 480
Operating income	$ 270

The company sold 150 signs during the year.

Required:

Using cost-volume-profit analysis, answer the following questions.

What is the company's contribution margin ratio?

What is the company's breakeven point in signs?

How many signs would the company have to sell to attain a target operating income of $210?

What is the company's margin of safety in in units for signs?

What is the company's degree of operating leverage?

Round to 2 decimal places.