Brett's Repair Shop has a monthly target operating income of $40,000. Variable expenses are 60% of sales, and monthly fixed expenses are $10,000. Read the requirements. Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Begin by identifying the formula to compute the margin of safety. - X Requirements = Margin of safety in dollars (Round intermediate calculations up to the nearest whole dollar and your final answer to the nearest whole dollar.) 1. Compute the monthly margin of safety in dollars if the shop achieves its The margin of safety is income goal. 2. Express Brett's margin of safety as a percentage of target sales. Requirement 2. Express Brett's margin of safety as a percentage of target sales. 3. What is Brett's operating leverage factor at the target level of operating income? Begin by identifying the formula to compute the margin of safety as a percentage of target sales. 4. Assume that the company reaches its target. By what percentage will the company's operating income fall if sales volume declines by 10%? Margin of safety percentage (Round the percentage to the nearest whole percent.) The margin of safety percentage is % of target sales. Print Done Requirement 3. What is Brett'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. Operating leverage factor (Round your answer to two decimal places.) The operating leverage factor is Requirement 4. Assume that the company reaches its target. By what percentage will the company's operating income fall if sales volume declines by 10%? (Round your answer to two decimal places, XXXX%.) If volume decreases 10%, operating income will decrease %