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The Following Monthly Budgeted Data Are Available for the International

Question 137

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The following monthly budgeted data are available for the International Company:
 Product A  Product B  Product C  Sales $500,000$300,000$900,000 Variable expenses 300,000210,000720,000 Contribution margin $200,000$90,000$180,000\begin{array}{|l|r|r|r|}\hline & \text { Product A } & \text { Product B } & \text { Product C } \\\hline \text { Sales } & \$ 500,000 & \$ 300,000 & \$ 900,000 \\\hline \text { Variable expenses } & \underline{300,000} & 210,000 & \underline{720,000} \\\hline \text { Contribution margin } & \$ 200,000 & \$ 90,000 & \$ 180,000 \\\hline\end{array}
Budgeted operating income for the month is $220,000.
Required:
a)Calculate the break-even sales for the month.
b)Calculate the margin of safety.
c)Calculate the degree of operating leverage.

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