For each question, fill in the blank, and sketch your solution process and any necessary explanations.

The three questions use this case: This month, Candel Gym has sales of $300,000, contribution margin of $90,000, fixed cost of $54,000 and operating profit of $36,000.

Q1. [10% of test] What is the breakeven in sales dollars? $________________________ .

Q2. What is the firm’s current margin of safety ratio to sales [ie., safety ratio]? _____ % [5% of test]

Q3. What is the firm’s operating leverage number? _________ times [5 % of test]