managerial accounting

Banff Repair Shop has a monthly target operating income of $40,000 Variable expenses are 85% of sales and monthly fixed expenses are $9,500. Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Banff Repair Shop's margin of safety as a percentage of target sales. 3. What is Banff 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 Banff Repair Shop's operating income fall if sales volume declines by 18%? 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. Margin of safety in dollars