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)

---

Definitions:

Strategic Objectives

Goals set by a business or organization to guide its strategy and drive toward long-term success.

Implementation

The process of putting a plan or decision into effect, ensuring that theoretical strategies are executed into practical actions.

Cross-training

A training method where employees are taught skills and responsibilities of positions other than their own, increasing flexibility and understanding within a workforce.

Integrated Teams

Teams composed of members with diverse skills, backgrounds, and expertise working together towards a common goal, often emphasizing inclusivity and collaboration.