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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
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. =Marginofsafetyindollars (Round intermediate calculations up to the nearest whole dollar and your linal answer to the nearest whole dollar.) The margin of safety is Requirement 2. Express Carter's margin of safety as a percentage of target sales. Begin by identifying the formula to compute the margin of safety as a percentage of target sales. =Marginofsafatypercentage (Round the percentage to the nearest whole percent.) The margin of safety percentage is % of target sales. Requirement 3. What is Carter's operating leverage factor at the target level of operating income? Begin by identifying the formula to compute the operating leverage factor at the target level of operating income. = Operating leverage factor (Round your answer to two decimal places.) The operating leverage factor is Requirements Begin by identifying the formula to compute the margin of safety. 1=Marginofsafetyindollars 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. (Round intermediate calculations up to the nearest whole dollar and your final answer to the nearest whole dollar.) 2. Express Carter's margin of safety as a percentage of target sales. 3. What is Carter's operating leverage factor at the target level of operating The margin of safety is income? 4. Assume that the company reaches its target. By what percentage will the Requirement 2. Express Carter's margin of safety as a percentage of target sales. company's operating income fall if sales volume declines by 8% ? Begin by identifying the formula to compute the margin of safety as a percentage of target sales. = Margin of safety percentage (Round the percentage to the nearest whole percent.) The margin of safety percentage is % of target sales. Requirement 3. What is Carter's operating leverage factor at the target level of operating income? Begin by identifying the formula to compute the operating leverage factor at the target level of operating income. 1=Operatingleveragefactor (Round your answer to two decimal places.) The operating leverage factor is If volume decreases 8%, operating income will decrease of
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