4 Randy's Repair Shop has a monthly target profit of $21,000 Variable costs are 40% of sales and monthly fixed costs are $27,000 Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal 2. Express Randy's margin of safety as a percentage of target sales. 3. Why would Randy's managernent want to know the shop's margin of safely? Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal Select the labels and enter the amounts to compute Randy's Repair Shop's monthly margin of safety in dollars. (2) = Margin of safety in dollars Requirement 2. Express Randy's margin of safety as a percentage of target sales (Enter your answer as a whole percent) The margin of safety as a percentage of target sales is Requirement 3. Why would Randy's management want to know the shop's margin of safety? Managers can use margin of safely to assess the (3) (1) O Operating income Breakeven sales in dollars Target sales in dollars O Breakeven sales in units Target sales in units Contribution margin to the company when there is a possibility of (4) Making this assessment helps managers (5) (2) O Operating income (3) O benefits (4) O a change in target sales Breakeven sales in dollars Target sales in dollars O disadvantages O a large decrease in sales O Breakeven sales in units Target sales in units O risk O higher than expected operating income Contribution margin (5) O accurately calculate a product's contribution margin. o choose a realistic target profit O make informed decisions Activate Windows Go to Settings to activate Windows