Question
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:
- Calculate the break-even sales for the month.
- Calculate the margin of safety.
- Calculate the degree of operating leverage (two decimal points).
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Managerial Accounting
Authors: Linda Smith Bamber, Karen Wilken Braun, Jr. Harrison, Walter T.
1st Edition
0138129711, 978-0138129712
