Edward's Repair Shop has a monthly target operating income of $15,000. Variable expenses are 70% of sales, and monthly fixed expenses are $12,000. 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 Breakeven 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.) The margin of safety is $ 50,000 Requirement 2. Express Edward'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 = Margin of safety percentage (Round the percentage to the nearest whole percent.) The margin of safety percentage is 56 % of target sales. Requirement 3. What is Edward's operating leverage factor at the target level of operating income? Begin by identifying the formula to compute the operating leverage factor at the target level of operating income. Contribution margin Operating income Operating leverage factor The margin of safety percentage is 56 % of target sales. Requirement 3. What is Edward's operating leverage factor at the target level of operating income? Begin by identifying the formula to compute the operating leverage factor at the target level of operating income. Contribution margin - Operating income Operating leverage factor (Round your answer to two decimal places.) The operating leverage factor is 1.80 Requirement 4. Assume that the company reaches its target. By what percentage will the company's operating income fall if sales volume declines by 8%? (Round your answer to two decimal places, XX.XX%.) If volume decreases 8%, operating income will decrease 8.00 %