Homework Clinic
Social Science Clinic => Accounting => Topic started by: vHAUNG6011 on Jan 5, 2020
-
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?
◦ $16,000
◦ $4,000
◦ $22,000
◦ $10,000
-
$10,000
-
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?
◦ 62.50%
◦ 60.00%
◦ 166.67%
◦ 137.50%
-
62.50%
-
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 Julia's operating leverage factor at the target level of operating income?
◦ 0.63
◦ 2.67
◦ 1.60
◦ 0.40
-
1.60