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Robert's Repair Shop has a monthly target profit of $ 28000. Variable costs are 80...

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Accounting

Robert's Repair Shop has a monthly target profit of $ 28000. Variable costs are 80 % of sales, and monthly fixed costs are $12000.

1. Compute the monthly margin of safety in dollars if the shop achieves its income goal.

2. Express Robert's margin of safety as a percentage of target sales.

3. Why would Robert's management want to know the shop's margin of safety?

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