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Victoria Repair Shop has a monthly target operating income of $34,000. Variable expenses are 85% of sales and monthly fixed expenses are $9,600. Requirements 1.

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Victoria Repair Shop has a monthly target operating income of $34,000. Variable expenses are 85% of sales and monthly fixed expenses are $9,600. Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Victoria Repair Shop's margin of safety as a percentage of target sales. 3. What is Victoria Repair Shop's operating leverage factor at the target level of operating income? 1 Accrime that the ranair chon reaches its Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Begin by identifying the formula to compute the margin of safety. Margin of safety in dollars The margin of safety is $ (Round interim calculations up to the nearest whole dollar and your final answer up to the nearest whole dollar.) Requirement 2. Express Victoria Repair Shop's margin of safety as a percentage of target sales. Requirement 2. Express Victoria Repair Shop's margin of safety as a percentage of target sales. Begin by identifying the formula to compute the margin of safety as a percentage of target sales. Margin of safety percentage The margin of safety percentage is % of target sales. (Round your answer to the nearest whole percent.) Requirement 3. What is Victoria Repair Shop's operating leverage factor at the target level of operating income? Begin by identifying the formula to compute the operating leverage factor at the target level of operating income. Operating = leverage factor The operating leverage factor is (Round your answer to two decimal places.) Requirement 4. Assume that the repair shop reaches its target. By what percentage will Victoria Repair Shop's operating income fall if sales volume declines by 14%? (Round your answer to two decimal places.) Based upon the operating leverage factor, if ...DAL.. 4 AD/

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