Southwest Electric Co-Op Has Variable Expenses of 20% of Sales

question 131

Multiple Choice

Southwest Electric Co-op has variable expenses of 20% of sales and monthly fixed expenses of $150,000.The monthly target operating income is $50,000.What is the monthly margin of safety in dollars if Southwest Electric Co-op achieves its operating income goal?

• A)$125,000
• B)$437,500
• C)$250,000
• D)$ 62,500

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