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Please help with all requirments! Fostor's Repait Shap has a morithly target oseratng incomp of $50,000. Vaviothe expenses ave 75% of salos, and moritly twad
Please help with all requirments!
Fostor's Repait Shap has a morithly target oseratng incomp of $50,000. Vaviothe expenses ave 75% of salos, and moritly twad expensas are 511,000 . Hint The certribution margin rabo = toong. Variable expenses pereenage of sales Resd the requtrments Fequirement s. Combule the mosthly margin of safaty in dollars if the shoo achieres its iscone goal Begin by iffertifying the formula to compulat the margin of safety. Target arlessin dollans . Breakeven sales in dollars = Margin of safotr in dolars (fiound intemediate calculations up to the noareat whole dollar and your final answer to the marest whoio dotlan.) - The margin of safety is uirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. n by identifying the Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Foster's margin of safety as a percentage of target sales. 3. What is Foster's operating loverage 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% Step by Step Solution
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