Question
Margin of Safety Yellow Sticker Companys variable expenses are 40% of sales. The company has monthly fixed expenses of $15,000 and sells each unit for
Margin of Safety
Yellow Sticker Companys variable expenses are 40% of sales. The company has monthly fixed expenses of $15,000 and sells each unit for $0.50. The monthly target operating income is $9,000.
a. What is the monthly margin of safety in dollars if Yellow Sticker Company achieves its operating income goal?
$Answer in dollars
b. What is the monthly margin of safety in units if Yellow Sticker Company achieves its operating income goal?
Answer units
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
7th edition
978-0077632427, 77632427, 78025656, 978-0078025655
