Summer Repair Shop has a monthly target operating income of $40,000. Variablo expenses are 85% of sales and monthy fixed expenses are $9,500. Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Summer Repair Shop's margin of safety as a percentage of target sales 3. What is Summer Repair Shop's operating leverage factor at the target level of operating income? 4. Assume that the repair shop reaches its target. By what percentage will Summer Repair Shop's operating income fall if sales volume decines by 14% ? Requirement 1. Compute the monthly margin of satoty in dollars if the shop achioves its income goal Bogin by identifying the formula to compute the margin of safety