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

$180,000

Budgeted operating income for the month is $220,000.

Submission instructions:

a)Calculate the break-even sales for the month.

b)Calculate the margin of safety.

c)Calculate the degree of operating leverage.