Julia's Catering has a monthly target operating income of $6,000.Variable expenses are 40% of sales and monthly fixed expenses are $3,600.What is the monthly margin of safety in dollars if the business achieves its operating income goal?
A) $ 10,000
B) $ 22,000
C) $ 16,000
D) $ 4,000
Correct Answer:
Verified
Q159: A company's margin of safety can
Q160: The operating leverage factor will be
Q161: By multiplying the operating leverage factor
Q162: Julia's Catering has a monthly target
Q163: Duncan Enterprises is considering building
Q165: Hartville Kitchens has a monthly target
Q166: To find a firm's operating leverage
Q167: Hartville Kitchens has a monthly target
Q168: The lowest possible operating leverage factor
Q169: Veron Corporation is considering building
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents