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Calculate the break-even sales for the month

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Reference no: EM132530360

The following monthly budgeted data are available for the Stark Company:

                                    Product A                  Product B                 Product C

Sales                     $500,000                    $300,000         $900,000

Variable expenses      300,000                  210,000                720,000

Contribution margin  $200,000                $90,000                 $180,000

Budgeted operating income for the month is $220,000.

Required:

Question a) Calculate the break-even sales for the month.

Question b) Calculate the margin of safety.

Question c) Calculate the degree of operating leverage.

Reference no: EM132530360

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