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Ronnie's Repair Shop has a monthly target profit of $28,000. Variable costs are 80% of sales, and monthly fixed costs are $12,000. 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 3. Why would Ronnie's management want to know the shop's margin of safety? Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Select the labels and enter the amounts to compute Ronnie's Repair Shop's monthly margin of safety in dollars. Margin of safety in dollars Requirement 2. Express Ronnie's margin of safety as percentage of target sales. (Enter your answer as a whole percent.) The margin of safety as a percentage of target sales is: % Requirement 3. Why would Ronnie's management want to know the shop's margin of safety? Making this to the company when there is a possibility of Managers can use margin of safety to assess the assessment helps managers SoakNSun Swim Park sells individual and family tickets. With a ticket, each person receives a meal, three beverages, and unlimited use of the swimming pools. SoakNSun has the following ticket prices and variable costs for 2018: For 2019, SoakNSun expects a sales mix of one individual ticket for every two family tickets. SoakNSun's total fixed costs are $75,000. Read the requirements. (Click the icon to view the data.) Complete the table below to calculate the weighted-average contribution margin. (Round the weighted-average contribution margin per unit to the nearest cent.) Individual Family Total X Contribution margin Weighted-average contribution margin per unit Requirement 2, Calculate the total number of tickets SoakNSun must sell to break even Start by selecting the formula and entering the amounts to calculate the total number of tickets SoakNSun must sell to break even. (Abbreviation used: Weighted-avg. CM weighted- average contribution margin. Complete all answer boxes. For items with a zero value, enter "0". Round your answer up to the nearest whole unit.) Required sales in units Requirement 3. Calculate the number of individual tickets and the number of family tickets the company must sell to break even. Breakeven sales of tickets X Individual - Family Y Allen Company sells flags with team logos. Allen has fixed costs of $120,000 per year plus variable costs of S6.00 per flag. Each flag sells for $10.00. Read the requirements. o break even. Requirement 1. Use the equation approach to compute the number of flags Allen must sell each year First, select the formula to compute the required sales in units to break even. Target profit break even. Rearrange the formula you determined above and compute the required number of flags The number of flags Allen must sell each year break even is Requirement 2. Use the contribution margin ratio approach two decimal places.) compute the dollar sales Allen needs to earn $8,000 in operating income for 2018. (Round the contribution margin ratio Begin by showing the formula and then entering the amounts to calculate the required sales dollars to earn $8,000 in operating income. (Round the required sales in dollars up to the nearest whole dollar. For example, $10.25 would be rounded to $11. Abbreviation used: CM contribution margin.) Required sales in dollars contribution margin income statement for the year ended December 31, 2018, for sales of 26,0000 flags. (Round your final answers up to the next whole number.) (Use parentheses or a Allen Company Contribution Margin Income Statement Year Ended December 31, 2018 Operating Income (Loss) Requirement 4. The company is considering an expansion that will increase fixed costs by 40 % and variable costs by $1.00 per flag. Compute the new breakeven point expansion? Give your reasoning. (Round your final answers up to the next whole number.) (Use the equation approach units and in dollars. Should Allen undertake the units to break even under the expansion plan. Begin by selecting the formula to compute the required sales Target profit = break even under the expansion plan. Rearrange the formula you determined above and compute the required number of flags flags. n units would be Under the expansion plan, the breakeven point dollars would be $ Under the expansion plan, the breakeven point Should Allen undertake the expansion? Give your reasoning. the expected costs. Allen should only undertake the expansion if expected profits from the expansion Choose from any list or enter any number in the input fields and then continue to the next question Highway Driving School charges $720 per student to prepare and administer written and driving tests. Variable costs of S360 per student include trainers' wages, study materials, and gasoline. Annual fixed costs of $100,800 include the training facility and fleet cars. Read the requirements Requirement 1. For each of the following independent situations, calculate the contributian margin per unit and the breakeven point in units: Begin by showing the formula for contribution margin per unit and then enter the amounts to calculate the contribution margin per unit for each situation. (Abbreviation used: CM contribution margin.) CM per unit Situation a Situation b Situation c = Situation d. Now select the labels o show the formula r breakeven point in units and then enter the amounts to calculate the breakeven point in units for each situation. (Complete answer boxes. Abbreviation used: CM= contribution margin.) =Required sales in units ( Situation a. + Situation b + Situation c Situation d = Requirement 2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units. First, compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit. The contribution margin when the sales price decreases. The contribution margin when variable costs decrease. The contribution margin when the fixod costs decrease Now, compare the impact of changes in the sales price, variable costs, and fixed costs on the breakeven point in units when the sales price decreases. The breakeven point when the variable costs decrease. The breakeven point when fixed costs decrease. The breakeven point The Round Clock Company sells a particular clock for $65. The variable costs are $14 per clock and the breakeven point is 260 clocks. The company expects clocks, what effect would the sale of additional sell 310 clocks this year the company actually sells 480 clocks have on operating income? Explain your answern The sale f an additional 170 clocks would operating income by the amount of The total effect would amount to $