Pretty Pictures Co. has a monthly target operating income of $7,400. Variable expenses are 80% of sales and monthly fixed expenses are $820. What is the monthly margin of safety as apercentage of target sales in dollars?OA. 20.00%ⒸB. 90.02%OC. 902.44%OD. 109.98%

Contribution margin ratio :— It is calculated by deducting variable to sales ratio and 100%.…

Answered: Pretty Pictures Co. has a monthly…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Pretty Pictures Co. has a monthly target operating income of $7,400. Variable expenses are 80% of sales and monthly fixed expenses are $620. What is the monthly margin of safety as a percentage of target sales in dollars? OA. 20.00% B. 90.02% OC. 902.44% OD. 109.98%