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Sam's appliance outlet has variable expenses of 40% of sales. the manager reported monthly fixed expenses of $240,000. the monthly target operating income is $80,000. what is the monthly margin of safety in dollars if the manager at sam's appliance outlet achieves the operating income goal?

Respuesta :

emdgeon
$133,333.33

Sales = OI + FE + VE
       x = 80,000 +240,000 + 0.4x
  0.6x = 320,000
       x = 533,333.33

BEP = 400,000
Margin of safety = 533,333.33 - 400,000

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