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Calculate the margin of safety

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Reference no: EM132501353

The following monthly budgeted data are availble

                                           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.ble for the Stark Company:

Reference no: EM132501353

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