Question 24, E7-36A (similar to) Part 2 of 7 E Homework: Chapter7 HW Score: 92.8%, 28.2 of 25 points 9 Points: 0.2 of 1 John's Repair Shop has a monthly target operating income of $15,000. Variable expenses are 70% of sales, and monthly xed expenses are $12,000. Read the @uirements. E) Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Requirements Begin by identifying the formula to compute the margin of safety. Target sales in dollars ' Breakeven sales in dollars = Margin 0f safety in dOI'aI'S Compute the monthly margin of safety in dollars if the shop achieves its (Round intermediate calculations up to the nearest whole dollar and your nal answer to the nearest whole dollar.) The margin of safety is income goal. Express John's margin of safety as a percentage of target sales. What is John's operating leverage factor at the target level of operating income? Assume that the company reaches its target. By what percentage will the company's operating income fall if sales volume declines by 15%? Done