Pretty Pictures Co. has a monthly target operating income of $7,400. Variable expenses are 80% of sales and monthly fixed expenses are $620. What is the monthly margin of safety as a percentage of target sales in dollars? OA. 20.00% B. 90.02% OC. 902.44% OD. 109.98%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Pretty Pictures Co. has a monthly target operating income of $7,400. Variable expenses are 80% of sales and monthly fixed expenses are $820. What is the monthly margin of safety as a
percentage of target sales in dollars?
OA. 20.00%
ⒸB. 90.02%
OC. 902.44%
OD. 109.98%
Transcribed Image Text:Pretty Pictures Co. has a monthly target operating income of $7,400. Variable expenses are 80% of sales and monthly fixed expenses are $820. What is the monthly margin of safety as a percentage of target sales in dollars? OA. 20.00% ⒸB. 90.02% OC. 902.44% OD. 109.98%
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