Marcus Allen is evaluating a business opportunity to sell premium car wax at vintage car shows. The wax is sold in 64-ounce tubs. Marcus can buy the premium wax at a wholesale cost of $29 per tub. He plans to sell the premium wax for $84 per tub. He estimates fixed costs such as travel costs, booth rental cost, and lodging to be $880 per car show. Read the requirements: Requirement 1 . Determine the number of tubs Marcus 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. Marcus must sell tubs per show to breakeven. Requirement 2a. Determine the sates volume in units necessary to earn the desired profit assuming Marcus wants to earn a profit of \$1,320 per show. Marcus must seil tubs per show to eam a proht of $1,320 per show b. Determine the sales volume in dollars necessary to earn the desired profit assuming Marcus wants to earn a profit of $1,320 per show. Begin by identifying the formula to compute the sales volume in dollars necessary to earn the desired profit. Breakeven (Do not round intermediary calculations. Round your answer to the nearest whole dollar) Marcus must acherese sales of to eam it profit of $1,320 per stiow. c. Using the contribution margin format, prepare an income statement (condensed version) to confirm your answers to parts a and b. Condensed income Statement c. Using the contribution margin format, prepare an income statement (condensed version) to confirm your answers to parts a and b. Requirement 3. Determine the margin of safety between the sales volume at the breakeven point and the sales volurne required to earn the desired profit. Determine the margin of safety in both sales dollars, units, and as a percentage. Requirement 3. Determine the margin of safety between the sales volume at the breakeven point and the sales volum required to earn the desired profit. Determine the margin of safety in both sales dollars, units, and as a percentage Begin by identifying the formula to compute the margin of safety in dollars. -1=Marginofsafetyindollars The margin of safety in dollars is Now identify the formula to compute the margin of safety in units The margin of safety in units is units. Now identify the formula to compute the margin of safety as a porcentage Now identify the formula to compute the margin of safety in units The margin of safety in units is units. Now identify the formula to compute the margin of safety as a.percentage Margin of safety as a percentane of taroet sales The margin of salety as a percentage of target sales is
