Hunter Osborne is evaluating a tusiness opportunity to soli premium car wax at vintage car shows. The wax is sold in 64 -ounce tubs. Hunter can buy the premum wax at a wholesale cost of \\( \\$ 30 \\) per tub. He plans to selt the premium wax foc \\( \\$ 80 \\) per tub. Ho estimates foced costs such as travel costs, booth rental cost, and lodging to be \\( \\$ 900 \\) per car show. Read the cogoirements Requirement 1. Detormine the number of tubs Hunter must sel per show to break even. Begin by identhing the formula to compule the sales in units at various levels of operating income using the contribution margin approach. Hunter must sel tubs per show to eam a profic of \\$1,100 per show. b. Denermine the saios volume in dolars necessary to eam the desired proft assuming Hunter wants to eam a profit of \\( \\$ 1,100 \\) per show. Begin by idensting the formula to compute the sales volume in dollars necessary to earn the desired proft. \\[ \\text { 1. } \\quad \\text { Breakeven sales in doltars } \\] (Do hot round inearmediary calcilations. Round your answer to the nearest whole dollar) Hentar must achieve sales of to eam a profit of \\( \\$ 1,100 \\) per show. Q. Using the contritution margin format, prepace an income statoment (condensed vorsion) to confirm your answers to parts a and b. Requirement 3, Desermine the margin of safuty betweon the salos volume at the breakeven point and the sales volume requirod to cam the desirod profit. Delefmine the margin of Hurter Osborne is evaluabng a business opportunity to sell premium car wax at vintage car shows. The wax is sold in e4-ounce bubs. Hunter can buy the premium wax at a wholesale ocst of \\( \\$ 30 \\) per tub. He plans to sell the premium wax for \\( \\$ 80 \\) per tub. He estimates fixed costs such as travel costs, booth rental cost, and lodging to be \\( \\$ 900 \\) per car show. Read the coguiraments c. Using the contribution margin format, prepare an income statement (condensed vorsion) to confirm your answers to parts a and b. Requirement 3. Detormine the margin of safety between the sales volume at the breakeven point and the sales volume required to eam the desired profit. Detarmine the margin of safety in both sales dollars, units, and as a percentage. Begin by identfying the formula to computo the margin of safety in dollars. The margin of salety in dollars is Now identify the formula to compute the margin of safety in units Now identify the formula to compute the margin of sataty as a percentage. Hunter Osbome is ovaluating a business opportunity lo sell premium car wax at vintage car shows. The wax is sold in 64 -ounce tubs. Hunter can buy the premium wax at a cost of \\( \\$ 30 \\) per tub. Ho plans to sell the premium wax for \\( \\$ 80 \\) per tub. He estimates foxed costs such as travel costs, booth rental cost, and lodging to be \\( \\$ 900 \\) per car shove. Read the tegsirements: c. Using the contribution margin format, prepare an income statement (condensed version) to confirm your answers to parts a and b. Requirements Requirement 3. Determine the margin of safety between th safery in both sales dollars, units, and as a percentage. Begin by identifying the formula to compute the margin of s The margin of safety in dollars is Now identify tho formula to compute the margin of safety in The margin of safety in units is units. 1. Determine the number of tubs Hunter must sell per show to break even. 2. Assume Hunter wants to earn a profit of \\( \\$ 1,100 \\) per show. a. Determine the sales volume in units necessary to eam the desired profit. b. Dotermine the sales volume in dollars necessary to eam the desired profit. c. Using the contribution margin format, prepare an income statement (condensed vorsion) 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. Now identify the formula to compute the margin of safety as a percentage
