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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

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 $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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