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    jdog3622's Avatar
    jdog3622 Posts: 2, Reputation: 1
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    #1

    Mar 14, 2016, 09:07 AM
    Accounting Question difficulty
    ronnie's repair shop has a monthly target profit of $54,000. Variable costs are 20% of sales, and monthly fixed costs are $18,000.


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


    2. Express Ronnie's margin of safety as a percentage of target sales
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
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    #2

    Mar 14, 2016, 11:48 AM
    What work have you done? We don't do it for you. Show your work.
    jdog3622's Avatar
    jdog3622 Posts: 2, Reputation: 1
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    #3

    Mar 14, 2016, 04:32 PM
    Nothing. I don't even know where to start and my prof is out this week
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
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    #4

    Mar 14, 2016, 07:11 PM
    In order to achieve $54000 profit, you obviously need more$$ as income. Look at you other numbers, $18,000. What does that get subtracted from. I'll go no further unless you try. Think gross vs net.
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