Terry's Repair Shop has a monthly target coerating income of $15,000. Variable expenses are 70% of sales, and monthly fixed expenses are $12,000. Hint The contribution margin ratio - 100%- Variable expenses percentage of sales Read the requirements Requirement 1. Comp Begin by identifying the Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal 2. Express Terry's margin of safety as a percentage of target sales 3. What is Terry's operating leverage factor at the target level of operating income? Assume that the company reaches its target. By what percentage will the company's operating income fail if sales volume declines by 7% Print Done