Question
The following monthly budgeted data is available for the International Company: Product C Product J Product R Sales $500,000 $300,000 $900,000 Variable expenses 300,000 210,000
- The following monthly budgeted data is available for the International Company:
| Product C | Product J | Product R | |
| Sales | $500,000 | $300,000 | $900,000 |
| Variable expenses | 300,000 | 210,000 | 720,000 |
| Contribution margin | $ 200,000 | $ 90,000 | $ 180,000 |
Budgeted net income for the month is $220,000. Required: a. Calculate the break-even sales for the month. Round up your answers to the nearest whole number b. Calculate the margin of safety. c. Calculate the operating leverage.
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
