Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume David's, a local tanning salon, has annual fixed costs are $100,000, and variable costs are 20 percent of sales revenue. Last year's revenues totaled

Assume David's, a local tanning salon, has annual fixed costs are $100,000, and variable costs are 20 percent of sales revenue. Last year's revenues totaled $220,000. What was last year's margin of safety in sales dollars?

$95,000

( )

$125,000

( )

$76,000

( )

$375,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

Students also viewed these Accounting questions