Use the information below to answer the following question(s) .
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:
Verified
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