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month and (b) dollars. E5.10 (LO 3, 4), AP Service In the month of March, Style Salon services 560 clients at an average price of

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month and (b) dollars. E5.10 (LO 3, 4), AP Service In the month of March, Style Salon services 560 clients at an average price of $120. During the month, fixed costs were $21,024 and variable costs were 60% of sales. Compute contribution margin and break-even point. Instructions a. Determine the total contribution margin in dollars, the per unit contribution margin, and the contribution margin ratio. b. Using the contribution margin technique, compute the break-even point in dollars and in units. E5.11 (LO 3, 4), AP Service Spencer Kars provides shuttle service -..-- L--I----- 5 . The company is considering a purchase of equipment that would reduce its direct labor costs by $104,000 and would change its manufacturing overhead costs to 30% variable and 70% fixed (assume total manufacturing overhead cost is $350,000, as above). It is also considering switching to a pure commission basis for its sales staff. This would change selling expenses to 90% variable and 10% fixed (assume total selling expense is $250,000, as above). Compute (1) the contribution margin and (2) the contribution margin ratio, and recompute (3) the break-even point in sales dollars. Comment on the effect each of management's proposed changes has on the break-even point. (3) $1,735,714 8.3A (LO 2), AN Service The Grand Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern style meals in a moderate price range. Paul Weld, the manager of Grand, has determined that during the last 2 years the sales mix and contribution margin ratio of its offerings are as follows. Determine break-even sales under alternative sales strategies and evaluate results. Percent of Contribution Total Sales Margin Ratio Appetizers 15% 50% Main entrees 50% 25% Desserts 10% 50% Beverages 25% 80% Paul is considering a variety of options to try to improve the profitability of the restaurant. His goal is to generate a target net income of $117.000. The company has fixed costs of 51.053.000 per year. Instructions a. Calculate the total restaurant sales and the sales of each product line that would be necessary to achieve the desired target net income. Unmute 32:41 eee E8 Request control Aa 49 O 02 du ENG 653 PM 5/21/2020 SB AY AA SR SA AA Safwan Ibrahim Binsa Akram Rachid Younis All Abbas Alblooshi Shaima Mohammed Sultan Younis Asad Ahmed Abdel Maksoud MacBook Air

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