Shop has a monthly target operating income of $ 30,000. Variable expenses are 40% of sales, and
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Requirements
1. Compute the monthly margin of safety in dollars if the shop achieves its income goal.
2. Express Tom’s margin of safety as a percentage of target sales.
3. What is Tom’s operating leverage factor at the target level of operating income?
4. Assume that the company reaches its target. By what percentage will the company’s operating income fall if sales volume declines by 12%?
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Req 1 Contribution margin ratio 100 040 060 Breakeven sales in dollars F...View the full answer
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Saptashwa Pal
I had finished my high school at 2014.The same year I was also qualified to appear for Indian National Mathematical Olympiad.And from there, my interest towards mentoring young pupils for learning Mathematics, had grown.I started to aid people in Mathematics from that time.However from 2016 I have also started to provide teaching in Statistics as well which is my major in my Undergraduate studies. I was also selected for interview for M.Stat course in Indian Statistical Institute. From 2018, I initiated my masters studies in Statistics but I lost my enthusiasm and interest in the midway.Nowadays I teach students for their mathematics studies and also aid them in their preparation for math olympiad exams. However I have not put a stop in my studies.This is just a temporary break and I am only saving money to pursue my Master studies (in Mathematics this time) to somewhere better,preferably Europe.
My favourite topics in Mathematics is Number theory,Combinatorics,Linear Algebra ,Analysis and Abstract Algebra.
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