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Author Question: Southwest Electric Co-op has variable expenses of 20% of sales and monthly fixed expenses of ... (Read 45 times)

ericka1

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Southwest Electric Co-op has variable expenses of 20% of sales and monthly fixed expenses of $150,000.  The monthly target operating income is $50,000.


What is the monthly margin of safety in dollars if Southwest Electric Co-op achieves its operating income goal?
◦ $250,000
◦ $62,500
◦ $125,000
◦ $437,500


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Marked as best answer by ericka1 on Jan 5, 2020

Carliemb17

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washai

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Southwest Electric Co-op has variable expenses of 20% of sales and monthly fixed expenses of $150,000.  The monthly target operating income is $50,000.


What is the monthly margin of safety as a percentage of target sales in dollars at Southwest Electric Co-op?
◦ 33.33%
◦ 80.00%
◦ 175.00%
◦ 25.00%




shenderson6

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Southwest Electric Co-op has variable expenses of 20% of sales and monthly fixed expenses of $150,000.  The monthly target operating income is $50,000.


What is Southwest Electric Co-op's operating leverage factor at the target level of operating income?
◦ 1.33
◦ 2.00
◦ 0.25
◦ 4.00




 

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