Rodneys Repair Shop has a monthly target operating income of $15,000. Variable costs are 75% of sales,
Question:
Requirements
1. Compute the monthly margin of safety in dollars if the shop achieves its income goal.
2. Express Rodney’s margin of safety as a percentage of target sales.
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Req 1 Breakeven sales in dollars Fixed costs Operating income Contribution margin ratio 10000 0 ...View the full answer
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Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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