DIVOC Limited supplies multiple-layer surgical masks for daily wear and N95 masks with activated carbon options. Certain masks are designed for higher risk environments than others. N95 respirator masks (N95) can filter out 95% of small particles and are designed for the highest-risk environments. Surgical masks (Surgical) are made for lower risk medical situations and are designed to stop the spread of germs from the wearer. Cloth masks (Cloth) are appropriate for lower risk environments outside of medical facilities. These masks can stop the spread of spray from coughs or sneezing and can also be used over surgical masks or respirators to help preserve the mask underneath.

DIVOC prepared the following budget information for the coming year: m Surgical Cloth Total $ $ $ 3 Sales 85,714 1,000,000 177,777 1,263,491 Variable expenses 25,714 800,000 97,777 923,491 Contribution margin 60,000 200,000 80,000 340,000 Fixed expenses (7255,0001 Net operating income m The budget assumes the sale of 20,000 cartons of N95, 100,000 cartons of Surgical, and 30,000 cartons of Cloth