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You Break It, We Fix-it Repair Shop has a monthly target profit of $16,300. Variable...

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Accounting

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You Break It, We Fix-it Repair Shop has a monthly target profit of $16,300. Variable costs are 53% of sales, and monthly fixed costs are $8,800. (Note: 100% of Sales = Variable Costs + Contribution Margin). (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. (Fixed Costs + Target Profit) Contribution Margin per ratio (%) Required Sales in Dollars to Break-even + (Fixed Costs + Target Profit) / Contribution Margin ratio (%) II Required Sales in Dollars to meet Target Profit + / Expected sales - Break-even sales = Margin of safety in dollars 2. Express what You Break It, We Fix-it Repair Shop margin of safety is as a percentage of target sales. Margin of safety in dollars / Expected sales in dollars = Margin of safety ratio (%) / =

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