Carter's Repair Shop has a monthly target operating income of $30,000. Variable expenses are 40% of sales, and monthly fixed expenses are $7,500. 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 Target sales in dollars Margin of safety in dollars (Round intermediate calculations up to the nearest whole dollar and your final answer to the nearest whole dollar) $ 50,000 Breakeven sales in dollars The margin of safety is Requirement 2. Express Carter's margin of safety as a percentage of target sales. Begin by identifying the formula to compute the margin of safety as a percentage of target sales. Margin of safety in dollars Target sales in dollars (Round the percentage to the nearest whole percent) The margin of safety percentage is % of target sales Margin of safety percentage

expenses percentage of sales. Resd the reaurements Requirement 1. Compute the monmy margin al satety en dobars is ewe wige acheves it income osal Degin by identifyeg the formile is compute the margen af sobly