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The Grey Line Company uses the following monthly budget data: Alpha Doodad Beta Doodad Gamma Doodad Sales $ 5 0 0 , 0 0 0

The Grey Line Company uses the following monthly budget data:
Alpha
Doodad Beta
Doodad Gamma
Doodad
Sales
$500,000
$300,000
$900,000
Variable expenses
$300,000
$210,000
$720,000
Contribution margin
$200,000
$90,000
$180,000
The Grey Line Company has budgeted $220,000 in operating income from the three doodads for the current month.
Perform the following tasks:
Calculate the break-even sales (in total dollars) for the month.
Calculate the margin of safety (in total dollars).
Calculate the degree of operating leverage.

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