Calculate the break-even sales for the month

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Reference no: EM133116821

Question - 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

The budgeted operating income for the month is $206,000.

Required -

1. Calculate the break-even sales for the month.

2. Calculate the margin of safety.

3. Calculate the degree of operating leverage (two decimal points).

Reference no: EM133116821

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