Bubba's Western Wear is a western hat retailer in Lubbock, Texas. Although Bubba's carries numerous styles of Western hats, each hat has approximately the same price and Invoice (purchase) cost, as shown in the following table. Sales personnel recelve a commission to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales growth at Bubba's has been great. The business is very competitive, however and Bubba, the owner, has relied on his knowledgeable and courteous staff to attract and retain customers who otherwise might go to other western wear stores. Because of the rapid growth in sales, Bubba is also finding the management of certain aspects of the business more difficult, such as restocking Inventory and hiring and training new salespeople. 180.00 28.50 26.50 Sales price Per unit variable expenses Purchase cost Sales comissions Total per unit variable poate Total ansal tixed expenses Advertising Nent Salaries Total tined expe 55.00 6247.500 223,000 232.000 1922,300 Required: 1. Calculate the annual breakeven point, both in terms of units and in terms of sales dolors 2. Bubba's sells 34,000 hats, what is its before tax income or loss? Support your answer by preparing a contribution Income statement 3. If Bubba's sells 47,000 hats what is margin of safety (MOS) in dollars and MOS ratio? 4. Bubba is considering the elimination of sales commissions completely and increasing salaries by 5297,625 annually What would be the new breakeven point in units? What would be the before-tax income or loss (34,000 hats are sold with the new salary plan Complete this question by entering your answers in the tabs below. Required Required Required Required Calculate the annual breakeven point, both in terms of units and in terms of sales dollars. Do not found intermediate calculations) Breven Point In units In dollars Required 2 > Bubba's Western Wear is a western hat retaler in Lubbock, Texas. Although Bubba's carries numerous styles of western hats, each hat has approximately the same price and involce (purchase) cost as shown in the following table Sales personnel receive a commission to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales growth at Bubba's has been great. The business is very competitive, however, and Bubba, the owner, has relied on his knowledgeable and courteous staff to attract and retain customers who otherwise might go to other westem wear stores. Because of the rapid growth in sales, Bubba is also finding the management of certain aspects of the business more difficult, such as restocking inventory and hiring and training new salespeople 580.00 sales price Terunt variable expenses Purchase cost Sales con Total per unit variable costs Total ansal tised expenses Advertising Sant Salaries Total fixed expenses 26.50 26.50 0 55.00 5241.500 223,000 312 000 $822,500 Required: 1. Calculate the annual breakeven point, both in terms of units and in terms of sales dollars. 2. Bubba's sells 34.000 hats, what is its before tax income or loss? Support your answer by preparing a contribution Income statement 3. Bubba's sells 47000 hats, what is its margin of safety (MOS) in dollars and MOS ratio? 4 Bubba is considering the elimination of sales commissions completely and increasing salaries by $297,625 annually What would be the new breakeven point in units? What would be the before-tax income or loss 34,000 hats are sold with the new salary plan? Complete this question by entering your answers in the tabs below. Required Required Required Required If Bubba's sells 34,000 hats, what its before-tax income or loss? Support your answer by preparing a contribution income statement Beincome or Contribution Income Statement a Required 1 Required) Bubba's Westem Wear is a western hat retailer In Lubbock, Texas. Although Bubba's carries numerous styles of western hats, each hat has approximately the same price and involce (purchase) cost, as shown in the following table. Sales personnel receive a commission to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales growth at Bubba's has been great. The business is very competitive, however, and Bubba, the owner, has relied on his knowledgeable and courteous staff to attract and retain customers who otherwise might go to other western wear stores. Because of the rapid growth in sales, Bubba is also finding the management of certain aspects of the business more difficult, such as restocking inventory and hiring and training new salespeople. 180.00 Sales pece Per wit variable expenses Purchase coat Sales commissione Total per unit variable conta Total annual fixed expenses Advertising Rent Salarien Total tixed expenses 28.50 26.50 5 55.00 $247,500 223,000 352,000 $822,500 Required: 1. Calculate the annual breakeven point, both in terms of units and in terms of sales dollars. 2. Bubba's sels 34 000 hats, what is its before-tax income or loss? Support your answer by preparing a contribution income statement 3. If Bubba's sells 47,000 hats, what is its margin of safety (MOS) in dollars and MOS ratio? 4. Bubba is considering the elimination of sales commissions completely and increasing salaries by $297625 annually. What would be the new breakeven point in units? What would be the bofore-tax income or loss 34,000 hats are sold with the new salary plan Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Required If Bubba's sells 47.000 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 dollar MOS (Required 2 Required 4 > Bubba's Western Wear is a western hat retailer in Lubbock, Texas. Although Bubba's carries numerous styles of Western hats, each hat has approximately the same price and Invoice (purchase) cost, as shown in the following table Sales personnel receive a commission to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales growth at Bubba's has been great. The business is very competitive, however, and Bubba, the owner, has relied on his knowledgeable and courteous staff to attract and retain customers who otherwise might go to other westem wear stores. Because of the rapid growth in soles, Bubba is also finding the management of certain aspects of the business more difficult, such as restocking Inventory and hiring and training new salespeople. 500.00 28.50 20150 # 55.00 Sales puce terit variables Perchase cout Se minions Total pent variable costs Total al respeces Advertising hant Salaries tot tipus $267.500 235,000 353,000 3823.500 Required: 1. Calculate the annual breakeven point, both in terms of units and in terms of sales dollars 2. Bubba's sells 34 000 hats, what is its before tax income or loss? Support your answer toy preparing a contribution income statement 3. Bubba's sells 47000 hats, what is its margin of safety (MOS) in dollars and MOS ratio? 4 Bubba a comidering the elimination of sales commissions completely and increasing salaries by $207,625 annually. What would be the new breakeven point in units? What would be the before tax income or loss 34,000 hats are sold with the new Salary ple? Complete this question by entering your answers in the tabs below ured Pored 2 Required ured Bubba is considering the elimination of sales como completely and increasing salaries by 207,625 annually What would be the new breakeven point in units? What would be the before-tax income or loss if 34,000 hats are sold with the new salary planet roundermediate calculations New brearen pointi Before com Required