Margin of Safety

Yellow Sticker Company$$s variable expenses are $40\%$ of sales. The company has monthly fixed expenses of $$15,000$ and sells each unit for $$0\mathrm{.}50.$ The monthly target operating income is $$8,250.$

a$.$ What is the monthly margin of safety in dollars if Yellow Sticker Company achieves its operating income goal?

$Answer

$0$

in dollars

b$.$ What is the monthly margin of safety in units if Yellow Sticker Company achieves its operating income goal?

Answer

$0$

units