The Hampshire Company manufactures umbrellas that sell for $12.50 each. In 2014, the company made and sold 60,000 umbrellas. The company had fixed manufacturing costs of $216,000. It also had fixed costs for administration of $79,525. The per-unit costs of each umbrella are as follows:

Direct Materials: $3.00

Direct Labor: $1.50

Variable Manufacturing Overhead: $0.40

Variable Selling Expenses: $1.10

4. Calculate the margin of safety:

In units

In sales dollars

As a percentage

Please help correct my errors:

Requirement 4A
Margin of Safety in Units = Current Unit Sales Break-Even Point in Unit Sales
Current Unit Sales		Break-Even Point in Sales	Margin of Safety in Units
60,000		$45,465	14,535
Requirement 4B
Margin of Safety in Dollars = Current Sales in Dollars Break-Even Point Sales in Dollars
Current Sales in Dollars		Break-Even Point in Dollars	Margin of Safety in Dollars
$750,000
Requirement 4C
Margin of Safety as a Percentage = Margin of Sales in Units / Current Unit Sales
Margin of Safety in Units		Current Unit Sales	Margin of Safety Percentage
14,535		60,000	24%

2. Calculate the degree of operating leverage.

Degree of Operating Leverage = Contribution Margin / Operating Income
Contribution Margin		Operating Income	Operating Leverage