Question
Candelabra Cleaning Company's total fixed expenses amount to $34,700. Variable expenses are 75% of sales and target operating income is $60,000. Compute: a)Compute the margin
Candelabra Cleaning Company's total fixed expenses amount to $34,700. Variable expenses are 75% of sales and target operating income is $60,000.
Compute:
a)Compute the margin of safety in dollars assuming the company achieves its target operating income.
b)What is Candelabra's margin of safety as a percent of target sales?
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Managerial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
8th edition
978-1-119-3904, 1119392422, 111939242X, 1119390451, 978-1119392422
