Requirements 1,2,3

Reggie's Repair Shop has a monthly target profit of $54,000. Variable costs are 20% of sales, and monthly foxed costs are $18,000 Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal 2. Express Reggie's margin of safety as a percentage of target sales. 3. Why would Reggie'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 Reggie's Repair Shop's monthly margin of safety in dollars. - = Margin of safety in dollars Requirement 2. Express Reggie's margin of safety as a percentage of target sales. (Enter your answer as a whole percent.) The margin of safety as a percentage of target sales is: 0 % Requirement 3. Why would Reggie's management want to know the shop's margin of safety? Making this assessment helps managers Managers can use margin of safety to assess the to the company when there is a possibility of Select the labels and enter the amounts to compute Reggie's Repair Shop's monthly margin of safety in dollars. = Margin of safety in dollars 's margin of safety as a percentage of target sales. (Enter your answer as a whole itage of target sales is: Breakeven sales in dollars Breakeven sales in units Contribution margin Operating income Target sales in dollars Target sales in units gie's management want to know the shop's margin of safety? aty to assess the to the company when there is a possibility of Managers can use margin of safety to assess the to the company when there is a possibility of accurately calculate a product's contribution margin. choose a realistic target profit. make informed decisions. M y www ws and then continue to the next question, get sales. (Enter your answer as a whole percent.) o's margin of safety? company when there is a possibility of Making this assessment helps managers a change in target sales. a large decrease in sales. higher than expected operating income. en continue to the next question. Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Reggie's margin of safety as a percentage of target sales. 3. Why would Reggie's management want to know the shop's margin of safety