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Southwest Electric Co-Op Has Variable Expenses of 20% of Sales

Question 173

Multiple Choice

Southwest Electric Co-op has variable expenses of 20% of sales and monthly fixed expenses of $150,000.The monthly target operating income is $50,000.What is the monthly margin of safety in dollars if Southwest Electric Co-op achieves its operating income goal?


A) $125,000
B) $437,500
C) $250,000
D) $ 62,500

Correct Answer:

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