Exercise $8-11$ Calculating the CM Ratio, Margin of Safety, and Degree of Operating Leverage $($LO$1-$ CC$2$; LO$2-$ CC$8,10)$

Li$-$Wei Inc. recorded the following information for its main product:

$$Selling price per unit$$300$Costs per unit $($at the normal capacity of $30,000$ units$)$:$$Direct material$100$Direct labour$60$Variable overhead$40$Fixed overhead$50$Sales Commission$10\%$ of sales

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Required:

$1.$ Compute the contribution margin ratio and break$-$even sales.

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$2.$ What is the margin of safety in dollars and units, and the degree of operating leverage? $($Round degree of operating leverage to $2$ decimal places.$)$

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