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

question 10

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 as a percentage of target sales in dollars at Julia's Catering?

• A) 137.50%
• B) 62.50%
• C) 60.00%
• D) 166.67%

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Definitions:

Anxiety

A mood of unease or nervousness, often due to something happening soon or because the consequence is unknown.

Freud

Sigmund Freud, recognized for his theories on the unconscious mind and the development of psychoanalytic therapy.

Fixation

In psychology, a persistent focus of the id’s pleasure-seeking energies at an earlier stage of psychosexual development.

Freud

An Austrian neurologist named Sigmund Freud established psychoanalysis, which is a method for addressing mental illnesses by facilitating dialogue between a psychoanalyst and their patient.