Brett Rouse is evaluating a business opportunity to sell car wax at vintage car shows. the wax is sold in 64 ounce tubs. Brett can only buy the premium wax at wholesale cost of $32 per tub. He plans to sell the premium wax for $62 per tub. He estimates his fixed costs such as travel costs, booth rental costs, and lodging will be $600 per car show.
Brett Rouse is evaluating a business opportunity to sell premium car wax at vintage car shows. The waist in borc Breton by the pas tub. He estimates fixed costs such as travel costs, booth rental cost, and lodging to be $800 per car show Read the requirements Question 8 This Requirement 1. Determine the number of tubs Brett must sell per show to break even. Begin by identifying the formula to compute the sales in units at various levels of operating income using the contributionary path Brett must sell tubs per show to breakeven. San Requirement 2a. Determine the sales volume in units necessary to eam the desired profit assuming Breit wants to com a preto sa ser to Brett must sell tubs per show to earn a profit of $900 per show, b. Determine the sales volume in dollars necessary to earn the desired profit assuming Brett wants to eam a profit of 800 per to Begin by identifying the formula to compute the sales volume in dollars necessary to earn the desired profit Target sales in dolari Brett must achieve sales of to earn a profit of $900 per show. c. Using the contribution margin format, prepare an income statement (condensed version) to confirm your answers to parts and Condensed Income Statement Less: Choose from any list or enter any number in the input fields and then continue to the next question ett must sell per show to break even. ales in units at various levels of operating income using the contribution margin approa Sales in units keven. units necessary to earn the desired profit assuming Brett wants to eam a profit of $90 rn a profit of $900 per show. sary to earn the desired profit assuming Brett wants to earn a profit of 900 per show. - sales volume in dollars necessary to earn the desired profit. Target sales in dollars earn profit of $900 per show. are an income statement (condensed version) to confirm your answers to parts a and be IN the next question ting a business opportunity to sell premium car wax He estimates fixed costs such as travel costs, booth rental cost, and lo Read the requirements. Brett must achieve sales of c. Using the contribution margin format, prepare an income statement (cong to earn a profit of $900 per sho Condensed Income Statement Less: Less: Net income (loss) Requirement 3. Determine the margin of safety between the sales volume at Begin by identifying the formula to compute the margin of safety in dollars, The margin of safety in dollars is Now identify the formula to compute the margin of safety in units units. fcafety in units is the margin of safety between the sales volume at the breakeven point and the sales y mula to compute the margin of safety in dollars. Margin of safety in dollars lars is compute the margin of safety in units Margin of safety in units its is units. compute the margin of safety as a percentage. Margin of safety as a percentage of target sales % percentage of target sales is enter any number in the input fields and then continue to the next question Read the requirements. rtunity to sell premium car wax at vintage car shows. The sts such as travel costs, booth rental cost, and lodging to be 5800 de car sho Less: Requirements -X 1. Determine the number of tubs Brett must sell per show to break even 2. Assume Brett wants to earn a profit of $900 per show. a. Determine the sales volume in units necessary to earn the desired proft. 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. Done Print percentage of target 7% The margin of safety as a percentage of target sales is Choose from any list or enter any number in the input fields and then continue to the next ques
