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Stuart Company manufactures a single product. Each unit sells for $15. The firm's projected costs are listed below: Variable costs per unit: Production $5 SG&A

Stuart Company manufactures a single product. Each unit sells for $15. The firm's projected costs are listed below:

Variable costs per unit:

Production $5

SG&A $1

Fixed costs:

Production $40,000

SG&A $60,000

Estimated volume 20,000 units

a) What is Stuart's projected margin of safety for the current year?

b) What is Stuart's projected degree of operating leverage for the current year?

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