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good morning I have been working on this question, following the steps and database tells me what is wrong, can I have help please? Rainbow
good morning I have been working on this question, following the steps and database tells me what is wrong, can I have help please?
Rainbow Paints operates a chain of retail paint stores. Although the paint is sold under the Rainbow label, it is purchased from an independent paint manufacturer. Guy Walker, president of Rainbow Paints, is studying the advisability of opening another store. His estimates of monthly costs for the proposed location are as follows. Fixed costs: Occupancy costs Salaries 3,168 3,640 1,200 Variable costs (including cost of paint) $ 6 per gallon Although Ralnbow stores sell several different types of paint, monthly sales revenue consistently averages $t0 per galion sold. Required: a. Compute the contribution margin ratlo and the break-even point in dollar sales and in gallons sold for the proposed store. c. Walker thinks that the proposed store will sell between 2.200 and 2.600 gallons of paint per month. Compute the amount of operating income that would be eamed per month at each of these sales volumes. a Contrbution margin ratio 40 % Break-even sales volume in dofiars 3.202 Break-evon sales volume in gafons Operating rcome for 2,200 Galions $22 Operating income tor 2 600 Gallons $26 cco 0 galion 000
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