Hopi Corporation expects the following operating results for next year

Hopi Corporation expects the following operating results for next year:

Sales $400,000

Margin of safety $100,000

Contribution margin ratio 75%

Degree of operating leverage 4

What is Hopi expecting total fixed expenses to be next year?

What is Hopi expecting total fixed expenses to be next year?

a. $75,000

b. $100,000

c. $200,000

d. $225,000

Attachments:SOLUTION PREVIEW

Margin of safety = Actual sales – break-even sales

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