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Author Question: Southwest Electric Co-op has variable expenses of 20% of sales and monthly fixed expenses of ... (Read 555 times)

ericka1

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on: Jan 5, 2020
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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Reply #1 on: Jan 5, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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washai

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Reply #2 on: Jan 5, 2020
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%


jomama

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Reply #3 on: Jan 5, 2020
25.00%


shenderson6

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Reply #4 on: Jan 5, 2020
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


Sweetkitty24130

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Reply #5 on: Jan 5, 2020
4.00


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