Light Me Up Lamps Has Variable Expenses of 40% of Sales

question 120

Multiple Choice

Light Me Up Lamps has variable expenses of 40% of sales and monthly fixed expenses of $216,000. The monthly target operating income is $24,000. What is the monthly margin of safety in dollars if Light Me Up Lamps achieves its operating income goal?

• A)$40,000
• B)$440,000
• C)$400,000
• D)($240,000)

---

Definitions:

Tertiary Amine

An amine in which the nitrogen atom is connected to three alkyl or aryl groups.

Compounds

Substances formed by the chemical combination of two or more elements in definite proportions and structure.

Secondary Amine

A type of amine in which a nitrogen atom is bonded to two alkyl or aryl groups and one hydrogen, playing critical roles in organic synthesis and functioning as bases.

Compounds

Substances formed by the chemical combination of two or more elements in definite proportions.