Victor’s Repair Shop has a monthly target operating income of $20,000. Variable expenses are 60% of sales, and monthly fixed expenses are $12,000. Requirements

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

2. Express Victor’s margin of safety as a percentage of target sales.

3. What is Victor’s operating leverage factor at the target level of operating income?

4. Assume that the company reaches its target. By what percentage will the company’s operating income fall if sales volume declines by 12%?

Abenefit of using a debit or credit card instead of cash is that it provides a paper record of a purchase. looking at the purchases below, which one should be made using a credit or a debit card?

Winston uses the high-low method. it had an average cost per unit of $10 at its lowest level of activity when sales equaled 10,000 units and an average cost per unit of $6.50 at its highest level of activity when sales equaled 20,000 units. what would winston estimate its total cost to be if sales equaled 8,000 units?

Long-distance providers are becoming increasingly concerned about certain activities within their industry. various companies come together voluntarily to implement new standards of social responsibility that members must abide by. what seems to be the primary motivation in this case for an increased interest in social responsibility? - because corporations are creations of society, they are responsible for giving back to the communities in which they operate.- these companies have realized it is in their best interest to increase their social responsibility before they are once again subject to stricter regulations.- these companies are using social responsibility as a means to increase their profitability, both short term and long term.- long-distance providers have started taking pride in their industry and its record for social responsibility.- they feel a responsibility to their stockholders, employees, the government, investors, and society as a whole.