Curt Rugs is holding a two week carpet sale at Josh's Club, a local warehouse store Curt Rugs plans to sell carpets for $850 each The company will purchase the carpets from a local distributor for $340 each, with the privilege of returning any unsold units for a full refund Josh's Club has offered Curt Rugs two payment alternatives for the use of space Option 1 A fixed payment of $18,870 for the sale period Option 2 20 of total revenues earned during the sale period Assume Curt Rugs will incur no other costs Read the requirements Requirement 1 Calculate the breakeven point in units for (a) option 1 and (b) option 2 First, determine the formula to calculate the number of units needed to break even Fixed cost Number of units to breakeven Contribution margin per unit Calculate the breakeven point in units for option 1, then option 2 (Complete all answer boxes For amounts with a 0 balance, make sure to enter O in the appropri cell Round your answers up to the nearest whole number ) Units (a) Option 1 (b) Option 2 Enter any number in the edit fields and then click Check Answer 1 2 Calculate the breakeven point in units for (a) option 1 and (b) option 2 At what level of revenues will Curt Rugs earn the same operating income under either option a For what range of unit sales will Curt Rugs prefer option 1 b For what range of unit sales will Curt Rugs prefer option 2 Calculate the degree of operating leverage at sales of 185 units for the two rental options Briefly explain and interpret your answer to requirement 3 3 4 E3 19 (book static) Question Help The Janowski Company has three product lines of beltsA, B, and Cwith contribution margins of $5, $4, and $3, respectively The president foresees sales of 168,000 units in the coming period, consisting of 24,000 units of A, 96,000 units of B, and 48,000 units of C The company's fixed costs for the period are $405,000 Read the requirements Requirement 1 What is the company's breakeven point in units, assuming that the given sales mix is maintained Begin by determining the sales mix For every 1 unit of Product A, units of Product B, and units of Product C are sold E3 21 (book static) Question Help Wharton Men's Clothing's revenues and cost data for 2012 are as follows E (Click the icon to view the data ) Mr Wharton, the owner of the store, is unhappy with the operating results An analysis of other operating costs reveals that it includes $25,000 variable costs, which vary with sales volume, and $10,000 fixed costs Read the requirements Requirement 1 Compute the contribution margin of Wharton Men's Clothing Determine the formula to calculate the contribution margin, then enter the amounts in the formula to compute the contribution margin of Wharton Men's Clothing Contribution margin Revenues $ 500,000 200,000 Cost of goods sold Gross margin Operating costs 300,000 Salaries fixed $ Sales commissions (11 of sales) Depreciation on equipment and fixtures Store rent ($5,000 per month) Other operating costs 190,000 55,000 14,000 60,000 35,000 354,000 $ (54,000) Operating income (loss) 1 Compute the contribution margin of Wharton Men's Clothing 2 Compute the contribution margin percentage 3 Mr Wharton estimates that he can increase revenues by 25 by incurring additional advertising costs of $15,000 Calculate the impact of the additional advertising costs on operating income 4 What other actions can Mr Wharton take to improve operating income Curt Rugs is holding a two week carpet sale at Josh's Club, a local warehouse store Curt Rugs plans to sell carpets for $850 each The company will purchase the carpets from a local distributor for $340 each, with the privilege of returning any unsold units for a full refund Josh's Club has offered Curt Rugs two payment alternatives for the use of space Option 1 A fixed payment of $18,870 for the sale period Option 2 20 of total revenues earned during the sale period Assume Curt Rugs will incur no other costs Read the requirements Requirement 1 Calculate the breakeven point in units for (a) option 1 and (b) option 2 First, determine the formula to calculate the number of units needed to break even Fixed cost Number of units to breakeven Contribution margin per unit Calculate the breakeven point in units for option 1, then option 2 (Complete all answer boxes For amounts with a 0 balance, make sure to enter O in the appropri cell Round your answers up to the nearest whole number ) Units (a) Option 1 (b) Option 2 Enter any number in the edit fields and then click Check Answer 1 2 Calculate the breakeven point in units for (a) option 1 and (b) option 2 At what level of revenues will Curt Rugs earn the same operating income under either option a For what range of unit sales will Curt Rugs prefer option 1 b For what range of unit sales will Curt Rugs prefer option 2 Calculate the degree of operating leverage at sales of 185 units for the two rental options Briefly explain and interpret your answer to requirement 3 3 4 E3 19 (book static) Question Help The Janowski Company has three product lines of beltsA, B, and Cwith contribution margins of $5, $4, and $3, respectively The president foresees sales of 168,000 units in the coming period, consisting of 24,000 units of A, 96,000 units of B, and 48,000 units of C The company's fixed costs for the period are $405,000 Read the requirements Requirement 1 What is the company's breakeven point in units, assuming that the given sales mix is maintained Begin by determining the sales mix For every 1 unit of Product A, units of Product B, and units of Product C are sold E3 21 (book static) Question Help Wharton Men's Clothing's revenues and cost data for 2012 are as follows E (Click the icon to view the data ) Mr Wharton, the owner of the store, is unhappy with the operating results An analysis of other operating costs reveals that it includes $25,000 variable costs, which vary with sales volume, and $10,000 fixed costs Read the requirements Requirement 1 Compute the contribution margin of Wharton Men's Clothing Determine the formula to calculate the contribution margin, then enter the amounts in the formula to compute the contribution margin of Wharton Men's Clothing Contribution margin Revenues $ 500,000 200,000 Cost of goods sold Gross margin Operating costs 300,000 Salaries fixed $ Sales commissions (11 of sales) Depreciation on equipment and fixtures Store rent ($5,000 per month) Other operating costs 190,000 55,000 14,000 60,000 35,000 354,000 $ (54,000) Operating income (loss) 1 Compute the contribution margin of Wharton Men's Clothing 2 Compute the contribution margin percentage 3 Mr Wharton estimates that he can increase revenues by 25 by incurring additional advertising costs of $15,000 Calculate the impact of the additional advertising costs on operating income 4 What other actions can Mr Wharton take to improve operating income

Question

Curt Rugs is holding a two week carpet sale at Josh's Club, a local warehouse store  Curt Rugs plans to sell carpets for $850 each  The company will purchase the carpets from a local distributor for $340 each, with the privilege of returning any unsold units for a full refund  Josh's Club has offered Curt Rugs two payment alternatives for the use of space  Option 1  A fixed payment of $18,870 for the sale period Option 2  20  of total revenues earned during the sale period Assume Curt Rugs will incur no other costs  Read the requirements  Requirement 1  Calculate the breakeven point in units for (a) option 1 and (b) option 2  First, determine the formula to calculate the number of units needed to break even  Fixed cost Number of units to breakeven Contribution margin per unit Calculate the breakeven point in units for option 1, then option 2  (Complete all answer boxes  For amounts with a  0  balance, make sure to enter  O  in the appropri cell  Round your answers up to the nearest whole number ) Units (a) Option 1 (b) Option 2 Enter any number in the edit fields and then click Check Answer 1  2  Calculate the breakeven point in units for (a) option 1 and (b) option 2  At what level of revenues will Curt Rugs earn the same operating income under either option  a  For what range of unit sales will Curt Rugs prefer option 1  b  For what range of unit sales will Curt Rugs prefer option 2  Calculate the degree of operating leverage at sales of 185 units for the two rental options  Briefly explain and interpret your answer to requirement 3  3  4  E3 19 (book static) Question Help The Janowski Company has three product lines of beltsA, B, and Cwith contribution margins of $5, $4, and $3, respectively  The president foresees sales of 168,000 units in the coming period, consisting of 24,000 units of A, 96,000 units of B, and 48,000 units of C  The company's fixed costs for the period are $405,000  Read the requirements  Requirement 1  What is the company's breakeven point in units, assuming that the given sales mix is maintained  Begin by determining the sales mix  For every 1 unit of Product A, units of Product B, and units of Product C are sold  E3 21 (book static) Question Help Wharton Men's Clothing's revenues and cost data for 2012 are as follows  E  (Click the icon to view the data ) Mr  Wharton, the owner of the store, is unhappy with the operating results  An analysis of other operating costs reveals that it includes $25,000 variable costs, which vary with sales volume, and $10,000 fixed costs  Read the requirements  Requirement 1  Compute the contribution margin of Wharton Men's Clothing  Determine the formula to calculate the contribution margin, then enter the amounts in the formula to compute the contribution margin of Wharton Men's Clothing  Contribution margin Revenues $ 500,000 200,000 Cost of goods sold Gross margin Operating costs  300,000 Salaries fixed $ Sales commissions (11  of sales) Depreciation on equipment and fixtures Store rent ($5,000 per month) Other operating costs 190,000 55,000 14,000 60,000 35,000 354,000 $ (54,000) Operating income (loss) 1  Compute the contribution margin of Wharton Men's Clothing  2  Compute the contribution margin percentage  3  Mr  Wharton estimates that he can increase revenues by 25  by incurring additional advertising costs of $15,000  Calculate the impact of the additional advertising costs on operating income  4  What other actions can Mr  Wharton take to improve operating income  Curt Rugs is holding a two week carpet sale at Josh's Club, a local warehouse store  Curt Rugs plans to sell carpets for $850 each  The company will purchase the carpets from a local distributor for $340 each, with the privilege of returning any unsold units for a full refund  Josh's Club has offered Curt Rugs two payment alternatives for the use of space  Option 1  A fixed payment of $18,870 for the sale period Option 2  20  of total revenues earned during the sale period Assume Curt Rugs will incur no other costs  Read the requirements  Requirement 1  Calculate the breakeven point in units for (a) option 1 and (b) option 2  First, determine the formula to calculate the number of units needed to break even  Fixed cost Number of units to breakeven Contribution margin per unit Calculate the breakeven point in units for option 1, then option 2  (Complete all answer boxes  For amounts with a  0  balance, make sure to enter  O  in the appropri cell  Round your answers up to the nearest whole number ) Units (a) Option 1 (b) Option 2 Enter any number in the edit fields and then click Check Answer 1  2  Calculate the breakeven point in units for (a) option 1 and (b) option 2  At what level of revenues will Curt Rugs earn the same operating income under either option  a  For what range of unit sales will Curt Rugs prefer option 1  b  For what range of unit sales will Curt Rugs prefer option 2  Calculate the degree of operating leverage at sales of 185 units for the two rental options  Briefly explain and interpret your answer to requirement 3  3  4  E3 19 (book static) Question Help The Janowski Company has three product lines of beltsA, B, and Cwith contribution margins of $5, $4, and $3, respectively  The president foresees sales of 168,000 units in the coming period, consisting of 24,000 units of A, 96,000 units of B, and 48,000 units of C  The company's fixed costs for the period are $405,000  Read the requirements  Requirement 1  What is the company's breakeven point in units, assuming that the given sales mix is maintained  Begin by determining the sales mix  For every 1 unit of Product A, units of Product B, and units of Product C are sold  E3 21 (book static) Question Help Wharton Men's Clothing's revenues and cost data for 2012 are as follows  E  (Click the icon to view the data ) Mr  Wharton, the owner of the store, is unhappy with the operating results  An analysis of other operating costs reveals that it includes $25,000 variable costs, which vary with sales volume, and $10,000 fixed costs  Read the requirements  Requirement 1  Compute the contribution margin of Wharton Men's Clothing  Determine the formula to calculate the contribution margin, then enter the amounts in the formula to compute the contribution margin of Wharton Men's Clothing  Contribution margin Revenues $ 500,000 200,000 Cost of goods sold Gross margin Operating costs  300,000 Salaries fixed $ Sales commissions (11  of sales) Depreciation on equipment and fixtures Store rent ($5,000 per month) Other operating costs 190,000 55,000 14,000 60,000 35,000 354,000 $ (54,000) Operating income (loss) 1  Compute the contribution margin of Wharton Men's Clothing  2  Compute the contribution margin percentage  3  Mr  Wharton estimates that he can increase revenues by 25  by incurring additional advertising costs of $15,000  Calculate the impact of the additional advertising costs on operating income  4  What other actions can Mr  Wharton take to improve operating income

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