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Nolan Austen is evaluating a business opportunity to sell premium car wax at vintage car shows. The wax is sold in 64-ounce tubs. Nolan
Nolan Austen is evaluating a business opportunity to sell premium car wax at vintage car shows. The wax is sold in 64-ounce tubs. Nolan can buy the premium wax at a wholesale cost of $31 per tub. He plans to sell the premium wax for $66 per tub. He estimates fixed costs such as travel costs, booth rental cost, and lodging to be $735 per car show. Read the requirements. Requirement 1. Determine the number of tubs Nolan 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. Sales in units ( Fixed expenses Operating income Nolan must sell tubs per show to breakeven. )+ Contribution margin per unit
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