Nolan Preston is ovaluating a business coportunity to sell premium car wex at vintage cast thows. The wax is sold in 64 -ounce tubs. Nolan can buy the premium wax at a wholesale cost: of $33 per tob. He plans to sel the premium wax for $73 per tub. He ostimatos fixed costs wuch as travel costs, booth rental cost, and ladging to be $720 per car ahow. Read the requrements. Requirement 1. Delermine the number of abs Nolan must soll per show to breosk even. Begn by identifing the formia to compute the sales in units at various leves of operating incore ising the contribution margin approach. Nolan Precton is oviluatiog a business opportunity to sell premium car wax at virtage car shows. The wax is sold in 64 ounce hubs. Nolan can buy the premium wax at a wholesale cost of $33 per sub. Ho plans lo sell the premium wax for $73 per Lib. He estimates feed costs such as travel cests, booth rental coat, and lodiging to be $720 per car show Read the requirements. b. Delermine the sales votume in dolare necessary to narn the desed proft assuming Nolan wants to eam a proft of 1,060 per show Begn by identifyng the formua to compuln the saies volurve in dollars necessary to eam the desired proft. = Target saies in dolan Nolm mast achieve sules of to eam a prott of 51,000 per ahow. c. Uting the contribufion margin format, prepare an income statement (condensed version) to confim yout antwers to parts a and b: Raquirement 3. Delermine the margin of safety betwoen the sales volume at the brakkeven point and the cules velume required to earn the desired profit. Delermine the margin af safety in both sales dotiars, inits, and as a percentage. Begin by identifyted the formula to compute the marpin of asfety in dotlars L Margin of salety in dolark The margin of nafosy in dolars is Now identey the formida to compode the marpin of safety in units The marph of aafety in units in Now identily the formula to conpuen the margin of salety as a percentage. Nolan Preslen is evaruating a business cpportunity to sell premium car wax at vintoge car ahows. The wax is sold in 64 -ounce tubts. Nolan can buy the premiurm wax at a wholesale conf of $33 per tub. He plans to sel the premium wax for $73 per tut. He evimates fied costs such as travel costs, beoth rental cost, and lodging to be $720 per ear show. Read the reguimments talety in both sales dallart, units, and as a percentage. Begh by tsentifying the formula to compuste the margin of sudety in dollars. - Mayin of exfoty in dotarn The marmin of safefy in dollars is Now idenbly the formula so compide the margin of salety in units The vargin of salety in inith a urits Now ideraly the formula to compute the murgin of salety as a percentoge
