Use the information below to answer the following question(s) .
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 Julia's Catering achieves its operating income goal?
A) $10,000
B) $22,000
C) $16,000
D) $4,000
Correct Answer:
Verified
Q221: The operating leverage factor, at a given
Q222: By multiplying the operating leverage factor by
Q223: Wynn Technology USB drives sell for $15
Q224: Use the information below to answer the
Q227: Companies with low operating leverage has relatively
Q228: All else being equal, a company with
Q229: The operating leverage factor will be exactly
Q229: Companies with high operating leverage have higher
Q230: Companies with high operating leverages generally have
Q231: A company's margin of safety is computed
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