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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Financial And Managerial Accounting

ISBN: 9780135080191

2nd Edition

Authors: Charles T Horngren, Jr Walter T Harrison

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Question Posted: May 16, 2024 06:01 AM

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Ronnies Repair Shop has a monthly target operating income of ($17,000). Variable costs are 80% of 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

Financial And Managerial Accounting

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