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 300.000 210.000 720,000 Contribution margin $200,000 $90,000 $180,000 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 Company: Product A Product B Product C Sales $500,000 $300,000 $900,000 Variable expenses 300.000 210.000 720,000 Contribution margin $200,000 $90,000 $180,000 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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