47) Heavenly Cupcakes has a monthly target operating income of $12,000. Variable expenses are 40% of sales and monthly fixed expenses are $8,000. Requirements: a. What is the monthly margin of safety in dollars if the business achieves its operating income goal? b. What is the monthly margin of safety as a percentage of target sales in dollars? c. What is Heavenly Cupcakes' operating leverage factor at the target level of operating income?
