Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I'm trying to create a gift shop to sell Robes, T-Shirts, and Shot glasses. My accountant has attached the pricing information regarding those products to

image text in transcribed
image text in transcribed
I'm trying to create a gift shop to sell Robes, T-Shirts, and Shot glasses. My accountant has attached the pricing information regarding those products to this email along with traceable fixed costs associated with the three products. I want to know what the contrabation margin is for each of these product segments. Also, I want to know how many shirts I need to sell to break even on sales of shirts. I also want to know how many shirts need to sell to make a profit of S2,200. Is there a way you can show me what that would look like on some sort of volume graph? Also, can you show me another volume graph with the break even point if I were to increase the T-shirt price by 10% along with the new amount I need to sell to break even and As far as robes go, I need you to to sell to break even. Then I need you to tell me how many I need to sell to make S2,940. Can you make another volume graph showing this? Also, I hear the price of terry cloth may go up. I don't know by how much, but show me all of the previous information along with a graph if the price of terry cloth goes up say.. . 1 5%. Do the same thing with the shot glasses. Break even info, and how many I should sell if I want to make $1,000. I also heard that despite it just being a shot glass, the city may charge me a for a liquor license. S6,000 more per year. Totally lame. If this happens, what will regular year and he predicts that 15% will both visit the gift shop and buy something. He believes customers will ultimately buy 1 robe, 2 shirts, and 2 shot glasses. If that's the case, he wants to know about some kind of"leverage" and some kind of "safety margin." He also mentioned that he wants a weighted contribute margin and the corresponding margin ratio. Finally, my suppliers have offered to pay $3,000 for each licensing fee in exchange for 6% commission on each sale. Assuming that 1 5% of my guests will buy stuff in the way my accountant predicts, is this a good idea for my product lines? I only need to see this with the original info, not with the price increases and liquor license. Robes Terry Cloth 20 Logo Packaging 46 Licensing Target Profit 2940 T-Shirts Shirt 10 Logo Price 25 Licensing 4000 Target Profit Shot glasses Logo Licensing Price Target Profit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Committee And Audit Quality

Authors: AMINU ALKASIM FAGO, ENIOLA SAMUEL AGBI, MOHAMMED NMA AHMED

1st Edition

6204209868, 978-6204209869

More Books

Students also viewed these Accounting questions