Heavenly Cupcakes has a monthly target operating income of $12,000. Variable expenses are 40% of...
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Heavenly Cupcakes has a monthly target operating income of $12,000. Variable expenses are 40% of sales and monthly fixed expenses are $8,000. Requirements: thly margin of safety in dollars if the business achieves its operating income goal? a.What is the mon b.What is the monthly margin of safety as a percentage of target sales in dollars? c What is Heavenly Cupcakes operating leverage factor at the target level of operating income? d, if sales increased 20%, how much would profits increase? Path: p
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