Margin of Safety Yellow Sticker Company's variable expenses are 40% of sales. The company has monthly fixed expenses of $15,000 and sells each unit for $0.50. The monthly target operating income is $9,000. a. What is the monthly margin of safety in dollars if Yellow Sticker Company achieves its operating income goal? $ 15,000 v in dollars b. What is the monthly margin of safety in units if Yellow Sticker Company achieves its operating income goal? 4,500 x units

Margin of Safety Yellow Sticker Company's variable expenses are 40% of sales. The company has monthly fixed expenses of $15,000 and sells each unit for $0.50. The monthly target operating income is $9,000. a. What is the monthly margin of safety in dollars if Yellow Sticker Company achieves its operating income goal? $ 15,000 v in dollars b. What is the monthly margin of safety in units if Yellow Sticker Company achieves its operating income goal? 4,500 x units

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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