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Homework answers / question archive / Fancy Furniture has variable expenses of 40% of sales and monthly fixed expenses of $240,000
Fancy Furniture has variable expenses of 40% of sales and monthly fixed expenses of $240,000. The monthly target operating income is $60,000. What is the monthly margin of safety in dollars if Fancy Furniture achieves its operating income goal?
A) $100,000
B) $900,000
C) $500,000
D) $(300,000)