J&A Corporation Has a Monthly Target Operating Income of $41,400

question 170

Multiple Choice

J&A Corporation has a monthly target operating income of $41,400. Variable expenses are 10% of sales and monthly fixed expenses are $12,600. What is the monthly margin of safety in dollars if the business achieves its operating income goal?

• A)$60,000
• B)$46,000
• C)$74,000
• D)$7400

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Definitions:

Advertising Emphasis

The focus or priority placed on advertising efforts within a company's overall marketing strategy.

Selective Demand

Demand for a specific brand or product without regard for available substitutes, often as a result of successful branding.

Product Life Cycle

The sequence of stages that a product moves through, starting from its introduction, advancing to growth, reaching maturity, and finally declining in the market.

Growth Stage

A phase in the product life cycle characterized by rapid market expansion, increased sales, and the successful establishment of a product in the market.