The following monthly budgeted data are available for the International Company:
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.

Question

The following monthly budgeted data are available for the International Company:  
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.

Quizplus · Accepted Answer

The Answer of The following monthly budgeted data are available for the International Company:  
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.

The Following Monthly Budgeted Data Are Available for the International