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Need help with all 4 requirements. I attempted the first two requirements but I'm not sure if they're correct.. so please answer all steps. Thank
Need help with all 4 requirements. I attempted the first two requirements but I'm not sure if they're correct.. so please answer all steps. Thank you
Bubba's Western Wear is a western hat retaller in Lubbock, Texas. Although Bubba's carries numerous styles of western hats, each hat has approximately the same price and invoice (purchase) cost, as shown in the following table. Sales personnel receive a commission to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales growth at Bubba's has been great. The business is very competitive, however, and Bubba, the owner, has relied on his knowledgeable and courteous staif to attract and retain customers who otherwise might go to other western wear stores. Because or the rapid growth in sales, Bubba is also finding the management of certain aspects of the business more ditficutt, such as restocking inventory and hiring and training new salespeople Required: 1. Calculate the annual breakeven point, both in terms of uniss and in terms of sales dollars. 2 If Bubba's sells 22,000 hats. What is its before-tax income or loss? Support your answer by preparing a contribution income statement 3. If Bubba's sells 32,000 hats, what is its margin of safety (MOS) in dollars and MOS ratio? 4. Bubba is considering the eimanation of sales commissions completely and increasing salaries by $157,000 annualiy. What would be the new breakeven point in units? What would be the before-tax income or loss if 22,000 hats are soid with the new salary plan? Complete this question by entering your answers in the tabs below. Calculate the annual breakeven point, both in terms of units and in terms of sales dollars. (Bo not round intermediate calculations.) at tubba's has been great. The bustiess is very competitive: howiver, and bubba, the owner, has rebed on his knowsergeable and courteous staff to attract and retain customers who otherwise might go to other western wear storec Because of the rapid growth in sales, Bubba is also findingt the management of certain aspects of the business, more dificuit, such as restocking irfentory and hiring and training new salerpeople Pequired: 1. Calculate the annuat breakeven point, both in terms of unts and an terms of saies dolars. 2 if Bubba 5 sels 22,000 hats, what is its before-tax income or loss? Support your answer by preparing a contububion ancome statement 3. if Bubba's sells 32000 hats, what is its margin of safety (MOS) in dodars and MOS ratio? 4. Eubba is considering the elminatioh of saler commisions completely and increasing salanes by $157000 annually What would be the new breakeven point in unts? What would be the before-tax income or loss 122,000 hats are sold wth the new solary plan? Complete this question by entering your answers in the tabs below. If Bubba \& sells 22,000 hats, what is its before-tas income or loss? Supeort your answer by preparing if contriturtion inconse statermin. Required: 1. Calculate the annual breakeven point, both in terms of units and in terms of sales dollars. 2. If Bubba's sells 22,000 hats, what is its before-tax income or loss? Support your answer by preparing a contr statement 3. If Bubba's selis 32,000 hats, what is its margin of safety (MOS) in dollars and MOS ratio? 4. Bubba is considering the elimination of sales commissions completely and increasing salaries by $157,000 ar the new breakeven point in units? What would be the before-tax income or loss if 22,000 hats are sold with the Complete this question by entering your answers in the tabs below. If Bubba's sells 32,000 hats, what is its margin of safety (MOS) in dollars and MOS ratio? (Round "MOS ratio" answe decimal place.) sales, Bubba is also finding the management of certain aspects of the business more difficult, such as restocking inventory and hiring and training new salespeople Required: 1. Calculate the annual breakeven point, both in terms of units and in terms of sales doliars. 2. If Bubbass sells 22,000 hats, what is its before-tax income or loss? Support your answer by preparing a contribution income statement. 3. If Bubba'if sells 32.000 hats, what is its margin of safety (MOS) in dollars and MOS ratio? 4. Bubba is considering the elimination of sales commissions completely and increasing salaries by $157,000 annually What wou/d be the new breakeven point in units? What would be the before-tax income or loss it 22,000 hats are sold with the new salary plan? Complete this question by entering your answers in the tabs below. Bubba is considering the elimination of sales commissions completely and increasino salaries by \$157,000 annually. What would be the new breakeven point in units? What would be the before-tax income of loss if 22,000 hats are sold with the new salary plan? (Do not rownd intermediate calcuadions:) Step by Step Solution
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