Contribution margin Operating income Operating leverage factor (Round your answer to two decimal places.) The operating leverage factor is 1.25 Requirement 4. Assume that the company reaches its target. By what percentage will the company's operating income fall if sales volume declines by 12%? (Round your answer to two decimal places, XX.XX%.) If volume decreases 12%, operating income will decrease %. Enter any number in the edit fields and then click Check Answer. LAMA 004 - i Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Terry's margin of safety as a percentage of target sales. 3. What is Terry's operating leverage factor at the target level of operating income? 4. Assume that the company reaches its target. By what percentage will the company's operating income fall if sales volume declines by 12%? Print Done Terry's Towing Service has a monthly target operating income of $30,000. Variable expenses are 40% of sales, and monthly fixed expenses are $7,500. Read the requirements