Use the Information Below to Answer the Following Question(s)

question 224

Multiple Choice

Use the information below to answer the following question(s) .
Northern Electric Co-op has variable expenses of 25% of sales and monthly fixed expenses of $285,000. The monthly target operating income is $75,000.
-What is the monthly margin of safety in dollars if Northern Electric Co-op achieves its operating income goal?

• A) $185,000
• B) $285,000
• C) $230,000
• D) $100,000