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A famous hat retallor focuses on selling high quality hats, unique designs made with the heat transfer process to provide customized service, where customers can
A famous hat retallor focuses on selling high quality hats, unique designs made with the heat transfer process to provide customized service, where customers can freely choose their favorite hat style, graffiti and printing style. The store is named as Bubba's Top Hats. Although Bubba's carries different styles of hats from trucker hats to snapback hats, each hat has approximately the same price and invoice cost. The pricing and purchasing costs are shown in the following table. Sales price Per unit variable expenses Purchase cost 26.50 Sales commissions 211.50 Total per unit variable costs $ 55.00 Total annual fixed expenses Advertising $ 267,500 Rent 253,000 Salaries 00.20 Total fixed expenses $ 80.se D It should be noted that the economy is currently humming and sales growth at Bubba's has been great. Also, sales personnel are on a commission to be motivated for an even more aggressive sales approach. As a result of the rapid growth in sales, Bubba, the owner of the store, has realized that the management of some areas of the business are becoming more challenging, such as restocking Inventory and hiring and training new sales force. The business is very competitive, however Bubba's reliance on the owner's knowledge plus on its customer focused staff have helped so far to attract and retain customers who otherwise might go to other hat retallor stores Required: 1. In terms of units and in terms of sales dollars. calculate the annual break-even point 2. What is the before-tax income or loss, if Bubba's sells 36,000 hats? Support your answer by preparing a contribution income statement 3. What is the margin of safety (MOS) in dollars and MOS ratio, if Bubba's sells 49,000 hats? 4. What would be the new break-even point in units. If Bubba is considering the elimination of sales commissions completely and Increasing salaries by $320,625 annually? If 36,000 hats are sold with the new salary plan, what would be the before tax income or loss? Required: 1. In terms of units and in terms of sales dollars, calculate the annual break-even point. 2. What is the before tax income or loss, If Bubba's sells 36,000 hats? Support your answer by preparing a contribution Income statement. 3. What is the margin of safety (MOS) in dollars and MOS ratio, if Bubba's sells 49,000 hats? 4. What would be the new break-even point in units, if Bubba is considering the elimination of sales commissions completely and increasing salaries by $320,625 annually? It 36,000 hats are sold with the new salary plan, what would be the before tax income or loss? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required 4 Calculate the annual breakeven point, both in terms of uniti and in terms of sales dollars. (Do not round intermediate calculations.) Breakeven Point in units in sales dollars Regulad Required 2 > Required: 1. In terms of units and in terms of sales dollars, calculate the annual break-even point. 2. What is the before-tax income or loss, if Bubba's sells 36,000 hats? Support your answer by preparing a contribution income statement 3. What is the margin of safety (MOS) in dollars and MOS ratio, if Bubba's sells 49.000 hats? 4. What would be the new break-even point in units, if Bubba is considering the elimination of sales commissions completely and Increasing salaries by $320.625 annually? If 36,000 hats are sold with the new salary plan, what would be the before-tax income or loss? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 If Bubba's sells 36,000 hats, what is its before tax income or loss? Support your answer by preparing a contribution Income statement Belorotax income or loss Contribution Income Statement Required: 1. In terms of units and in terms of sales dollars, calculate the annual break-even point 2. What is the before tax income or loss, if Bubba's sells 36,000 hats? Support your answer by preparing a contribution income statement 3. What is the margin of safety (MOS) in dollars and MOS ratio, if Bubba's sells 49.000 hats? 4. What would be the new break-even point in units, if Bubba is considering the elimination of sales commissions completely and increasing salaries by $320,625 annually? If 36,000 hats are sold with the new salary plan, what would be the before-tax income or loss? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 If Bubba's sells 49,000 hats, what is its margin of safety (MOS) in dollars and MOS ratio? (Round "MOS ratio answer to 1 decimal place.) Margin of safety (MOS) in dollars MOS ratio Required: 1. In terms of units and in terms of sales dollars, calculate the annual break-even point. 2. What is the before-tax income or loss, if Bubba's sells 36,000 hats? Support your answer by preparing a contribution income statement 3. What is the margin of safety (MOS) in dollars and MOS ratio, if Bubba's sells 49,000 hats? 4. What would be the new break-even point in units, ir Bubba is considering the elimination of sales commissions completely and Increasing salaries by $320,625 annually? If 36,000 hats are sold with the new salary plan, what would be the before tax Income or loss? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Bubba is considering the elimination of sales commissions completely and increasing salaries by $320,625 annually. What would be the new breakeven point in units? What would be the before tax income or loss if 36,000 hats are sold with the new salary plan? (Do not found intermediate calculations.) New breakeven point in units Before-tax income or loss RE
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