Corey Company has a margin of safety percentage of 20%. The break-even point is $260,000 and the variable costs are 45% of sales. Given this information, the operating profit is: Multiple Choice $28,600. $29,250. $23,400. $35,750.

Corey Company has a margin of safety percentage of 20%. The break-even point is $260,000 and the variable costs are 45% of sales. Given this information, the operating profit is: Multiple Choice $28,600. $29,250. $23,400. $35,750.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Corey Company has a margin of safety percentage of 20%. The break-even point is $260,000 and the variable costs are 45% of sales. Given this information, the operating profit is:

Multiple Choice

$28,600.
$29,250.
$23,400.
$35,750.

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