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Robert's Repair Shop has a monthly target prot of $21 ,000. Variable costs are 40% of sales, and monthly xed costs are $27,000. Requirements 1.
Robert's Repair Shop has a monthly target prot of $21 ,000. Variable costs are 40% of sales, and monthly xed costs are $27,000. Requirements 1. Compute the monthly margin of safety in dollars ifthe shop achieves its income goal. 2. Express Robert's margin of safety as a percentage of target sales. 3. Why would Robert'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 Robert's Repair Shop's monthly margin of safety in dollars. _ = Margin of safety in dollars Breakeven sales in dollars e Breakeven sales in units Contribution margin a it Operating income Target sales in dollars a Target sales in units : C
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