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Question 2 Time: 33 minutes Total: 20 marks The following monthly budgeted data are available for the Stark Company: Product A Product Product C Sales
Question 2 Time: 33 minutes Total: 20 marks The following monthly budgeted data are available for the Stark Company: Product A Product Product C Sales $500,000 $300,000 $900,000 Variable expenses 300,000 210,000 720,000 Contribution margin $200,000 $90,000 $186,000 The budgeted operating income for the month is $210,000. Submission Instructions: a. Calculate the break-even sales for the month. b. Calculate the margin of safety. c. Calculate the degree of operating leverage (two decimal points)
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