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Yellow Company's Variable Expenses Are 20% of Sales and Have

Question 270

Multiple Choice

Yellow Company's variable expenses are 20% of sales and have monthly fixed expenses of $24,000. The monthly target operating income is $800. What is the monthly margin of safety as a percentage of target sales in dollars?


A) 3) 23%
B) 196.77%
C) 80.00%
D) 3) 33%

Correct Answer:

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