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Question - The following monthly budgeted data is available for the Baxter Company:
Product C
Product J
Product R
Sales
$660,000
$380,000
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.
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