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

question 203

Multiple Choice

Use the information below to answer the following question(s) .
Julia's Catering has a monthly target operating income of $6,000. Variable expenses are 40% of sales and monthly fixed expenses are $3,600.
-What is the monthly margin of safety in dollars if Julia's Catering achieves its operating income goal?

• A) $10,000
• B) $22,000
• C) $16,000
• D) $4,000

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Definitions:

Deprivation

A state of lacking or being denied something considered to be a necessity or a benefit, often leading to adverse effects on health or well-being.

Needs

Basic requirements for human survival and psychological well-being, such as food, water, and belonging.

Preference

A predilection or inclination for something over others, often reflecting values, desires, or needs.

Motivation Index

A measure or indicator of an individual's level of motivation.