Testbank Exercise 4 A manufacturer of potting soil has the following financial data:

Pounds produced and sold	23,900
Sales	$189,800
Less: Variable manufacturing costs	121,000
Fixed manufacturing costs	10,000
Variable selling and administrative costs	30,900
Fixed selling and administrative costs	15,900
Net operating income	$12,000

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(a)

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What is the companys unit contribution margin? (Round answer to 2 decimal places, e.g. 1.64.)

Unit contribution margin

$

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(b) What is the companys degree of operating leverage? (Round answer to 2 decimal places, e.g. 1.64.)

Degree of operating leverage