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M6: MBC Exercises Ch. 6 Navigation
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Margin of Safety
Yellow Sticker Company’s variable expenses are 40% of sales. The company has monthly fixed expenses of $15,000 and sells each unit for $0.50. The monthly target operating income is $7,500.
a. is the monthly margin of safety in dollars if Yellow Sticker Company achieves its operating income goal?
SO
x in dollars
b. is the monthly margin of safety in units if Yellow Sticker Company achieves its operating income goal?
x units
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