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Ronnie's Repair Shop has a monthly target operating income of $12,000. Variable expensos are 70% of sales, and monithly frced oxpenses aro $9,000. Hint. The
Ronnie's Repair Shop has a monthly target operating income of $12,000. Variable expensos are 70% of sales, and monithly frced oxpenses aro $9,000. Hint. The contributco margin ratio =100%. Variable expenses percentage of sales Read the requitements Requirement 1. Compute the monthly margin of salety in dollars if the shop achioves its income goal. Begin by idenstying the formula to compute the maryin of safefy. Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Ronnie's margin of safety as a percentage of target sales. 3. What is Ronnie's operating leverage factor at the target level of operating income? 4. Assume that the company reaches its target. By what percentage will the company's operating income fall if sales volume declines by 9%
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