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Question content area top Part 1 Edward's Repair Shop has a monthly target operating income of $ 2 5 comma 0 0 0 . Variable
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Part
Edward's Repair Shop has a monthly target operating income of $ comma Variable expenses are of sales, and monthly fixed expenses are $ comma Hint: The contribution margin ratio Variable expenses percentage of sales.
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Requirement 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 dollarsEdward's Repair Shop has a monthly target operating income of $ Variable expenses are of sales, and monthly fixed expenses are $ Hint: The contribution margin ratio Variable expenses percentage of sales.
Read the requirements.
Requirement 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
Compute the monthly margin of safety in dollars if the shop achieves its
income goal.
Express Edward's margin of safety as a percentage of target sales.
What is Edward'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
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