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Answer all requirements in this question in the picture Adam's Repair Shop has a monthly target operating income of $12,500. Variable expenses are 75% of

Answer all requirements in this question in the picture

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Adam's Repair Shop has a monthly target operating income of $12,500. Variable expenses are 75% of sales, and monthly fixed expenses are $9,500. Hint: The contribution margin ratio = 100% - Variable expenses percentage of sales. Read the requirements. X Requirements Begin by identifying the formula to compute the margin of safety. Margin of safety in do Compute the monthly margin of safety in dollars if the shop achieves its (Round intermediate calculations up to the nearest whole dollar and your final answer to the nearest who income goal. Express Adam's margin of safety as a percentage of target sales. The margin of safety is 3. What is Adam's operating leverage factor at the target level of operating income? Requirement 2. Express Adam's margin of safety as a percentage of target sales Assume that the company reaches its target. By what percentage will the company's operating income fall if sales volume declines by 12%? Begin by identifying the formula to compute the margin of safety as a percentage of target sales. Margin of safety percenta (Round the percentage to the nearest whole percent.) Print Done The margin of safety percentage is % of target sales. Requirement 3. What is Adam's operating leverage factor at the target level of operating income? Begin by identifying the formula to compute the operating leverage factor at the target level of operating income. 11 Operating leverage factor

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