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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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