Randy's Repair Shop has a monthly target profit of $$21,000.$ Variable costs are $40\%$ of sales, and monthly fixed costs are $$27,000.$

Requirements

Compute the monthly margin of safety in dollars if the shop achieves its income goal.

Express Randy's margin of safety as a percentage of target sales.

Why would Randy's management want to know the shop's margin of safety?

Requirement $1.$ Compute the monthly margin of safety in dollars if the shop achieves its income goal.

Select the labels and enter the amounts to compute Randy's Repair Shop's monthly margin of safety in dollars.

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$=$ Margin of safety in dollars

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