*Computing Margin of Safety* Ricky's Repair Shop has a monthly target profit of $17,000. Variable...
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Accounting
*Computing Margin of Safety*
Ricky's Repair Shop has a monthly target profit of $17,000. Variable costs are 60% of sales, and monthly fixed costs are $8,000.
REQUIREMENTS:
1.) Compute the monthly margin of safety in dollars if the shop achieves its income goal.
2.) Express Ricky's margin of safety as a percentage of target sales.
Please explain how to do each step. I am studying for an exam and knowing how to complete this problem will be very beneficial. Thank you!
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