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 $3,750.
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 in units
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Authors: Tom Litton, Poppy Behrens, Erica Shatzer, George Bernal
1st Edition
0977157814, 978-0977157815
