The Following Monthly Budgeted Data Are Available for the International

question 104

Essay

The following monthly budgeted data are available for the International Company:
$\begin{array}{|l|r|r|r|}\hline & \text { Product A } & \text { Product B } & \text { Product C } \\\hline \text { Sales } & \$ 500,000 & \$ 300,000 & \$ 900,000 \\\hline \text { Variable expenses } & \underline{300,000} & 210,000 & \underline{720,000} \\\hline \text { Contribution margin } & \$ 200,000 & \$ 90,000 & \$ 180,000 \\\hline\end{array}$
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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Definitions:

Ciliary Action

The movement of cilia, tiny hair-like structures, that help to move fluid or materials across the surface of certain cells.

Muscular Contraction

Muscular contraction is the process where muscle fibers shorten or contract, generating force and movement in the body.

Extraembryonic Membrane

These are membranes outside the embryo that play vital roles in development and exchange in vertebrate embryos, such as the amnion, chorion, and others.

Neural Plate

The neural plate is a key developmental structure that serves as the foundation for the nervous system, forming from ectoderm and eventually folding to become the neural tube.