matthew's fish fry has a monthly target operating income of $8,300. variable expenses are 80% of sales and monthly fixed expenses are $800. what is the monthly margin of safety as a percentage of target sales in dollars?

Margin of Safety as percent of sales 91.21%

Explanation:

If variable = 80% of sales then

sales - 80% sales = .20 sales = Contribution margin ratio

Next will be calcualte the BEP

800/0.2 = 4,000

Sales to achieve target income of 8,300

(800+8,300)/.2 = 45,500

Margin of safety:

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