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

Accounting

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 in dollars if Yellow Company achieves its operating income goal?

A) $(18,750)

B) $56,250

C) $6,250

D) $31,250

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