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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
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 $0.50. The monthly target operating income is $9,750. a. What is the monthly margin of safety in dollars if Yellow Sticker Company achieves its operating income goal? $ in dollars b. What is the monthly margin of safety in units if Yellow Sticker Company achieves its operating income goal? units
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