Fancy Furniture Has Variable Expenses of 40% of Sales and Monthly

question 17

Multiple Choice

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)

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Definitions:

Historical Determinism

The view that personality is basically fixed in the early years of life and subject to little change thereafter.

Personality

A complex set of characteristics that makes one distinct from others.

Personality Research Methods

Various scientific techniques and tools used to study and measure human personality.

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact by controlling and manipulating variables.