Ronnies Repair Shop has a monthly target operating income of ($17,000). Variable costs are 80% of sales,
Question:
Ronnie’s Repair Shop has a monthly target operating income of \($17,000\). Variable costs are 80% of sales, and monthly fixed costs are $12,000.
Requirements
1. Compute the monthly margin of safety in dollars if the shop achieves its income goal.
2. Express Ronnie’s margin of safety as a percentage of target sales
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1 To calculate the monthly margin of safety in dollars if the shop achieves its income goal of 17000 ...View the full answer
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Related Book For 
Financial And Managerial Accounting
ISBN: 9780135080191
2nd Edition
Authors: Charles T Horngren, Jr Walter T Harrison
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