E21-43

E21-43 Computing margin of safety Learning Objective 5 Robbie's Repair Shop has a monthly target profit of $31,000. Variable costs are 20% of sales, and monthly fixed costs are $19,000. Requirements 1. $38,750 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Robbie's margin of safety as a percentage of target sales. 3. Why would Robbie's management want to know the shop's margin of safety