1. Determine the number of tubs Gary must sell per show to break even. 2. Assume Gary wants to earn a profit of $1,015 per show. a. Determine the sales volume in units necessary to earn the desired profit. b. Determine the sales volume in dollars necessary to earn the desired profit. c. Using the contribution margin format, prepare an income statement (condensed version) to confirm your answers to parts a and b. 3. Determine the margin of safety between the sales volume at the breakeven point and the sales volume required to earn the desired profit. Determine the margin of safety in both sales dollars, units, and as a percentage. Gay Sterback is evaluating a business opportunty to sell premium car wax at virioge car shown. The wax is sold in 64 ounce tubs. Gary can buy the premium wax at a whoiesale cost of \$31 por tub. Ho plans to sell the promium wax for $66 per tub. the estimates fixed costs sixh as travel costs, booth rental cost, and lodying to be 5735 per car showe Pead the 34 Requirement 3 . Devermine the margin of salety between the sales volume at the breakeven peint and the sales volume required to earn the desired profic. Determine the margin of sadety in both sales dollars, unts, and as a percentape Begn by identifying the formula to compute the margn of salety in dollans * Margin of sadety in dollars The mavgin of safety in dolas is Now iderefify the formula so compute the maign of salety in unts The margin of safety in unis is unts Nowiderify the formida to compule the margn of salety as a percentage Margnof alefy as a Gay Stenback is evaluating a business opporturity to sel premiun car wax at vintage car shows. The wax is sold in 64 -ounce tubs. Gary can buy the promium wax at a wholesale cost of $31 per tho. He plars to sell the premium wax lox $66 per tub He estimates fixed costs such as travol costs, booch rartal cost, and lodging to be $735 per car show Read the (Do not round intemediary calculations Round your answer to the nearest whole dollac) Gary must achieve salos of to eam a protit of $1,015 por show Requirement 3. Determine the margin of safety botween the sales volume at the breakeven point and the salos volume required to eam the desired proht. Determine the margin of salety in both sales dollas, units, and as a porcentage. Gary Stenback is evaluating a business opporturity to sel premium car wax at virego car shows. The mox is sold in 64 ounce tuos. Gary can bey the premium wax at a wholesale cost of $31 per the. He plars to sell the premium wax for $66 per tub. He estimates foed costs such as travel costs, booth rental cust, and longing to be $735 per car showe Read the - Margn of satety in dollars The mavgn of safety in dolars is Now derily the fomula so compute the mavin of salety in unts * Margin of satefy in unis The riargin of salety in urits is unis: Now idenafy the formula to compse the margn of alefy as a pencenage
