Carter'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. 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. 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Carter's margin of safety as a percentage of target sales. 3. What is Carter's operating leverage factor at the target level of operating income? 4. Assume that the company reaches its target. By what perchntage will the company's operating income fall if sales volume declines by 9%