Corey Company Has a Margin of Safety Percentage of 20

question 82

Multiple Choice

Corey Company has a margin of safety percentage of 20%. The break-even point is $200,000 and the variable costs are 45% of sales. Given this information, the operating profit is:

• A) $27,500.
• B) $18,000.
• C) $22,500.
• D) $22,000.

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