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Terry's Towing Service has a monthly target operating income of $30,000. Variable expenses are 40% of sales, and monthly fixed expenses are $7,500 Read the requirements 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 Requirements (Round Intermediate calculations up to the nearest whole dollar and your final answer to the nearest whole dollar) The margin of safety is S Requirement 2. Express Victor'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 (Round the percentage to the nearest whole percent 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal 2. Express Victor's margin of safety as a percentage of target sales 3. What is Victor's operating leverage factor at the target level of operating 4. Assume that the company reaches its target By what percentage will the company's operating income fall if sales volume declines by 12%? income? The margin of safety percentage is % of target sales Print Done Requirement 3. What is Victor'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 (Round your answer to two decimal places The operating leverage factor is Requirement 4. Assume that the company reaches its target. By what percentage will the company's operating income fall if sales volume declines by 12%? (Round your answer to two decimal places, XXXX%) if volume decreases 12%, operating income will decrease %

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