Evan Rouse is evaluating a business opportunity to sell premium car wax premium car wax vintage car shows. The wax is sold in 64-ounce tubs. Evan can buy the premium wax premium waxat a wholesale cost of $35per tub. He plans to sell the premium wax premium waxfor $90 per tub. He estimates fixed costs such as travel costs, booth rental cost, and lodging to be $1,210 per car show.

1.

Determine the number of tubs Evan must sell per show to break even.

2.

Assume Evan wants to earn a profit of 990 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.