part 1 already answered what is part 2&3

Yhe answer has been presented in the supporting sheet. Answer Part 1) The correct answer is Target Sales in Dollars Break Even Sales in Dollars Margin of safety in Dollars Margin of safety in dollars = ((12500+9500)/(1-75%)) - (9500/(1-75%)) =88000-38000 = $ 50000 Edward'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. 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 Edward's margin of safety as a percentage of target sales. 3. What is Edward'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 15%? Breakeven sales in dollars Contribution margin ratio Fixed expenses Target operating income Target sales in dollars Variable expenses