Reggie'sReggie's Repair Shop has a monthly target profit of $15,000. Variable costs are 75% of sales, and monthly fixed costs are $10,000. Requirements 1. Compute the monthly margin of safety in...

Reggie'sReggie's

Repair Shop has a monthly target profit of

$15,000. Variable costs are 75% of sales, and monthly fixed costs are $10,000.

Requirements

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

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

Jun 09, 2022

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