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

question 29

Multiple Choice

Use the information below to answer the following question(s) .
Hartville Kitchens has a monthly target operating income of $18,000. Variable expenses are 25% of sales and monthly fixed expenses are $12,000.
-What is the monthly margin of safety in dollars if Hartville Kitchens achieves its operating income goal?

• A) $24,000
• B) $40,000
• C) $56,000
• D) $8,000