Tom's Taxidermy Has a Monthly Target Operating Income of $25,000

question 92

Multiple Choice

Tom's Taxidermy has a monthly target operating income of $25,000. Variable expenses are 75% of sales and monthly fixed expenses are $15,000. What is the monthly margin of safety as a percentage of target sales in dollars?

• A)62.50%
• B)137.50%
• C)25.00%
• D)167.67%

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Definitions:

Temper Tantrum

An emotional outburst, usually seen in young children, characterized by yelling, crying, and sometimes physical behaviors like kicking or hitting, often in response to frustration or desire for attention.

Insecure-Resistant

A type of attachment characterized by anxiety and uncertainty in relationships, with a tendency to seek and reject intimacy and support.

Attachment

The emotional bond that forms between infants and their caregivers, crucial for the child's personal development and future relationships.

Insecure-Avoidant

Insecure-avoidant is a type of attachment style where individuals tend to maintain distance from others and avoid emotional connection or dependency.