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Homework answers / question archive / Neeley Grocery has a monthly target operating income of $25,000
Neeley Grocery has a monthly target operating income of $25,000. Variable expenses are 20% of sales and monthly fixed expenses are $15,000. What is the monthly margin of safety as a percentage of target sales in dollars?
A) 137.50%
B) 62.50%
C) 80.00%
D) 166.67%