Rickys Repair Shop has a monthly target profit of $17,000. Variable costs are 60% of sales, and
Question:
Requirements
1. Compute the monthly margin of safety in dollars if the shop achieves its income goal.
2. Express Ricky’s margin of safety as a percentage of target sales.
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Requirement 1 If variable costs are 60 of sales then the contribution margin ratio must be 40 of sa...View the full answer
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Related Book For 
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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