Neeley Grocery has a monthly target operating income of $25,000

Accounting Feb 24, 2021

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%

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