percentage of sales. 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. Requirements 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 9%