Fancy Furniture has variable expenses of 40% of sales and monthly fixed expenses of $240,000

Accounting Mar 05, 2021

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 as a percentage of target sales in dollars?

A) 180.00%

B) 25.00%

C) 20.00%

D) 60.00%

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