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Compute the monthly margin of safety in dollars

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Reference no: EM133066026

Question - 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.

Required -

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.

Reference no: EM133066026

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