E4-34A (similar to) Question Help Calgary Repair Shop has a monthly target operating income of $34,000. Variable expenses are 85% of sales and monthly fixed expenses are $10,500. Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Calgary Repair Shop's margin of safety as a percentage of target sales. 3. What is Calgary Repair Shop's operating leverage factor at the target level of operating income? 4. Assume that the repair shop reaches its target. By what percentage will Calgary Repair Shop's operating income fall if sales volume declines by 14%? 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 Break-even sales in dollars Margin of safety in dollars The margin of safety is $(Round interim calculations up to the nearest whole dollar and your final answer up to the nearest whole dollar.)