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The following monthly budgeted data are available for the International Company: Product A Product B Product C Sales $500,000 $300,000 $900,000 Variable expenses 300,000 210,000
The following monthly budgeted data are available for the International 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 Budgeted operating income for the month is $220,000. Required: a) Calculate the break-even sales for the month. (6) b) Calculate the margin of safety. (2) c) Calculate the degree of operating leverage. (2)
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