Victoria's Steel Parts produces parts for the automobile industry. The company has monthly fixed expenses of $460,000 and a contribution margin of 75% of revenues. Victoria feels like he is in a giant squeeze play: The automotive manufacturers are demanding lower prices, and the steel producers have increased raw material costs. Victoria's contribution margin has shrunk to 50% of revenues. Victoria's monthly operating income, prior to these pressures, was $260,000. Requirements To maintain this como lovel of nrofit what Requirement 1. To maintain this same level of profit, what sales volume (in sales revenue) must Victoria now achieve? Select the labels to complete the formula to compute the target sales revenue in dollars using the contribution margin approach. Then enter the amounts to calculate the new target sales in dollar Victoria must now achieve. (Enter ratios as decimals. Round your answer up to the nearest whole dollar.) Sales in = dollars 11 Requirement 2. If monthly sales are $1,080,000, by how much will he need to cut fixed costs to maintain his prior profit level of $260.000 per month? enter the amounts to calculate the new target sales in dollar Victoria must now achieve. (Enter ratios as decimals. Round your answer up to the nearest whole dollar.) Sales in = dollars Requirement 2. If monthly sales are $1,080,000, by how much will he need to cut fixed costs to maintain his prior profit level of $260,000 per month? Fixed expenses can only be $ in order to maintain the prior profit level of $260,000 per month. Therefore, Victoria will have to save at least $ per month in fixed costs by moving operations overseas if he plans to maintain his prior profit level. 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 volume decreases by 14%, operating income will decrease by 1%. Choose from any drop-down list and then ? continue to the next