Calculate the break-even sales for the month

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Reference no: EM133093210

Question - The following monthly budgeted data is available for the Baxter Company:

 

Product C

Product J

Product R

Sales

$660,000

$380,000

$660,000

Variable expenses

396,000

266,000

528,000

Contribution margin

$264,000

$114,000

$132,000

Budgeted operating income for the month is $260,000.

Required -

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

b) Calculate the margin of safety.

c) Calculate the degree of operating leverage.

Reference no: EM133093210

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