Question
1. J&A Corporation has a monthly target operating income of $ 20 comma 300. Variable expenses are 30% of sales and monthly fixed expenses are
1. J&A Corporation has a monthly target operating income of $ 20 comma 300. Variable expenses are 30% of sales and monthly fixed expenses are $ 7 comma 700. What is the monthly margin of safety as a percentage of target sales in dollars?
A. 26.36%
B. 72.5%
C. 70%
D. 13.79%
2. Expected purchases for June and July are $ 73 comma 000$73,000 and $ 86 comma 000$86,000, respectively. Purchases for May were $ 56 comma 000$56,000. All purchases are paid
4040%in the month of purchase and 6060% the following month. At what amount are June payments for purchases budgeted?
A.
$ 66 comma 200$66,200
B.
$ 97 comma 200$97,200
C.
$ 62 comma 800$62,800
D.
$ 86 comma 000$86,000
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