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Yellow Company's variable expenses are 30% of sales and have monthly fixed expenses of $21,000. The monthly target operating income is $4,200. What is the monthly margin of safety in dollars if Yellow Company achieves its operating income goal? A. $6,000 B. $66,000 C. ($25,200) D. $36,000 Training

Yellow Company's variable expenses are 30% of sales and have monthly fixed expenses of $21,000. The monthly target operating income is $4,200. What is the monthly margin of safety in dollars if Yellow Company achieves its operating income goal? A. $6,000 B. $66,000 C. ($25,200) D. $36,000 Training

FINANCIAL ACCOUNTING
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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Yellow Company's variable expenses are 30% of sales and have monthly fixed expenses of $21,000. The monthly target operating income is $4,200. What is the monthly margin of safety in dollars if Yellow Company achieves its operating income goal? A. $6,000 B. $66,000 C. ($25,200) D. $36,000 Tanning
Transcribed Image Text:Yellow Company's variable expenses are 30% of sales and have monthly fixed expenses of $21,000. The monthly target operating income is $4,200. What is the monthly margin of safety in dollars if Yellow Company achieves its operating income goal? A. $6,000 B. $66,000 C. ($25,200) D. $36,000 Tanning
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