Matthew's Fish Fry has a monthly target operating income of $7,200.Variable expenses are 60% of sales and monthly fixed expenses are $1,800.What is the monthly margin of safety as a percentage of target sales in dollars?

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C)
Monthly fixed expense $1,800
Targeted operating income 7,200
Contribution margin 9,000 divided by
Contribution margin % 40% (1- variable expense of 60%)
Targeted income = 22,500 (9,000 / 40%)
Less Breakeven 4,500 (fixed expense 1,800 / 40% CM)
Margin Safety dollars 18,000
Margin safety percentage 80.00% (18,000 margin safety/ 22,500 targeted Inc. )

Matthew's Fish Fry Has a Monthly Target Operating Income of $7,200.Variable