The following monthly budgeted data is available for a wholesale company;

product L product z product c

sales $400,000 $200,000 $800,000

variable expenses 240,000 140,000 640,0000

contribution margin $16,000 $60,000 $160,000

what is the break-even sales for the month,

b show the margin of safety in sales dollars

c show the operating leverage for the budgeted data

d Actual total sales for the month were the same as the budgeted sales -

However, the sales mix changed so that sales by product were: L - $560,000; Z

$280,000; C $560,000, Calculate the expected net operating income this new sales

mix. Explain why this net operating income figure differs from the original budgeted

net operating income of $130,000-