Help with requirement 2C

Evan Smith is evaluating a business opportunity to sell premium car wax at vintage car shows. The wax is sold in 64-ounce tubs. Evan can buy the premium wax at a wholesale cost of $32 per tub. He plans to sell the premium wax for $62 per tub. He estimates fixed costs such as travel costs, booth rental cost, and lodging to be $600 per car show. Read the requirements. Requirement 1. Determine the number of tubs Evan 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 contribution margin approach. Contribution margin per unit Operating income + Fixed expenses ) = Sales in units Evan must sell 20 tubs per show to breakeven. Requirement 2a. Determine the sales volume in units necessary to earn the desired profit assuming Evan wants to earn a profit of $900 per show. Evan must sell 50 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 Evan wants to earn a profit of 900 per show. Begin by identifying the formula to compute the sales volume in dollars necessary to earn the desired profit. Sale price per unit X Target sales in units Target sales in dollars Evan must achieve sales of $ 3,100 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 a and b. c. Using the contribution margin format, prepare an income statement (condensed version) to confirm your answers to parts a and b. Condensed Income Statement Sales 1240 640 Less: Variable costs Contribution margin 600 Less: 600 Fixed costs Net income (loss) Margin of safety in dollars The margin of safety in dollars is $ Now identify the formula to compute the margin of safety in units Margin of safety in units units The margin of safety in units is Now identify the formula to compute the margin of safety as a percentage. Margin of safety as a percentage of target sales The margin of safety as a percentage of target sales is o %