John's Repair ShopJohn's Repair Shop

has a monthly target operating income of

$ 12 comma 500$12,500.

Variable expenses are

7575%

of sales, and monthly fixed expenses are

$ 9 comma 500$9,500.

Homework: Chapter 07 Graded Homework Save Score: 0 of 7 pts 4 of 5 (3 complete) HW Score: 29.61%, 8.88 of 30 pt E7-34A (similar to) Question Help John's Repair Shop has a monthly target operating income of $12,500. Variable expenses are 75% of sales, and monthly fixed expenses are $9,500. Read the requirements. Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. i Requirements - X Begin by identifying the formula to compute the margin of safety. = Margin of safety in dollars 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal 2. Express John's margin of safety as a percentage of target sales. 3. What is John'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 7%? Print Done