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Yellow Company's variable expenses are 40% of sales and have monthly fixed expenses of $15,000

Accounting

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Yellow Company's variable expenses are 40% of sales and have monthly fixed expenses of $15,000. The monthly target operating income is $3,750. What is the monthly margin of safety as a percentage of target sales in dollars?

A) 20.00%

B) 180.00%

C) 60.00%

D) 25.00%