Sooooooft Company expects to produce 8,200 pillows and sell 7,100 pillows in August 2021. On August 1, 2021, there were no beginning inventories. The sales price is $70 and unit variable costs are $43 ($35 manufacturing and $8 selling and administrative). Total fixed costs are $147,420 ($106,600 manufacturing overhead and $40,820 selling and administrative) in April.

Q1. Compute breakeven point in units for August 2021.

		5,260
		5,460
		5,660
		5,860

Q2. Compute required sales in units if Soooooofts August target profit is $11,502.

		5,886
		6,086
		6,286
		6,486

Q3. Compute the margin of safety in units.

		1,240
		1,440
		1,640
		1,840

Q4. Compute Soooooofts operating income under absorption costing for August 2021.

		$1,380
		$1,580
		$1,780
		$1,980

Q5. Compute Soooooofts operating income under variable costing for August 2021.

		$42,280
		$44,280
		$46,280
		$48,280

Q6. Compute Soooooofts degree of operating leverage using the operating income under variable costing. Round to two decimal places.

		4.13
		4.33
		4.53
		4.73