Adam's Repair Shop has a monthly target operating income of $12,500. Variable expenses are 75% of sales, and monthly fixed expenses are S9.500. Read the eqiremenls. Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Begin by identfying the formula to compute the margin of safety Target sales in dollars Breakeven sales in dolarsMargin of safety in dollars Round intermediate calculations up to the nearest whole dollar and your final answer to the nearest whole dollar.) The margin of safety is$ Requirement 2. Express Adam's margin of safety as a percentage of target sales. Begin by identifying the formula to compute the margin of safety as a peroentage of target sales. 50,000 Requirements in dollars Margin of safety percentage. Margin of safety in dollars 1. Compute the monthly margin of safety in dollars if the shop achieves ts income goal. Round the percentage to the nearest whole percent.) 2. Express Adam's margin of safety as a percentage of target sales. 3. What is Adam's operating leverege factor at the target level of operating The margin of safety percentage is % of target sales. income? Assume that the company reaches its target. By what percentage wil the company's operating income fall if sales volume declines by 15%? 4. Print Done