Computing margin of safety Robbie’s Repair Shop has a monthly target profit of $31,000. Variable costs are 20% of Sales, and monthly fixed costs are $19,000. Requirements Compute the monthly margin of Safety in dollars if the shop achieves its income goal. Express Robbie’s margin of safety, as a percentage of margin Sales. Why would Robbie’s management want to know the shop’s margin of safety?

Computing margin of safety Robbie’s Repair Shop has a monthly target profit of $31,000. Variable costs are 20% of Sales, and monthly fixed costs are $19,000. Requirements Compute the monthly margin of Safety in dollars if the shop achieves its income goal. Express Robbie’s margin of safety, as a percentage of margin Sales. Why would Robbie’s management want to know the shop’s margin of safety?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10EB: Keleher Industries manufactures pet doors and sells them directly to the consumer via their web...

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