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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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