Use the information below to answer the two questions that follow. A company sells children and...

Transcribed Image Text:

Use the information below to answer the two questions that follow. A company sells children and adult books. Below are sales and cost data for both products: Sales Children $400,000 Adults Total $600,000 Variable Costs $100,000 $200,000 Fixed Expenses $210,000 Q) What is the company's margin of safety in sales dollar? ANS) $ Q) If sales were to increase to $1,750,000 (assuming relevant range), what would be the net operating income for the company? ANS) $ Use the information below to answer the two questions that follow. A company sells children and adult books. Below are sales and cost data for both products: Sales Children $400,000 Adults Total $600,000 Variable Costs $100,000 $200,000 Fixed Expenses $210,000 Q) What is the company's margin of safety in sales dollar? ANS) $ Q) If sales were to increase to $1,750,000 (assuming relevant range), what would be the net operating income for the company? ANS) $