Please find attached exercises of question 2. Please provide explanation and steps when applicable. All questions are attached as pictures in this discussion box. Correct answers with explanations will be given helpful rating promptly.
For Sandhill Company, actual sales are $1.19 million and break-even sales are $1,011,500. Calculate the margin of safety in dollars and the margin of safety ratio. Margin of safety in dollars $ ' Margin of safety ratio ' % Cullumber Inc. sells its product for $25 per unit and variable costs are $12 per unit. Its xed costs are $118,000. Calculate the required sales in units to achieve its target operating income of 10% of total costs. (Round answer to 0 decimal places, e.g. 125.) Required sales units Ivanhoe manufactures lawn mowers, weed trimmers, and chainsaws. Ivanhoe has fixed costs of $3, 150,000. Its sales mix and contribution margin per unit are as follows: Sales Mix Contribution Margin per Unit Lawn mowers 10% $20 Weed trimmers 40% 10 Chainsaws 50% 30 Calculate the number of units of each product that Ivanhoe must sell in order to break even under this product mix. (Round weighted- average contribution margin per unit to 2 decimal places, e.g. 1.25 and final answers to O decimal places, e.g. 125.) Lawn mowers: units Weed trimmers: units Chainsaws: unitsThe degrees of operating leverage for Crane Corp. and Cullumber Co. are 1.40 and 5.35, respectively. Both have operating incomes of $45,600. Determine their respective contribution margins. Crane Corp $ Cullumber Co. 35 The CVP income statements shown below are available for Oriole Company and Pharoah Company. Sales revenue $830,000 $830,000 Variable costs 415,000 12 1,000 Contribution margin 415,000 709,000 Fixed costs 3 15,000 609,000 Operating income $ 100,000 $ 100,000 (a 1) Calculate the degree of operating leverage for each company. (Round answer to 2 decimal places, e3. 15.25.) Oriole Co. Pharoah Co. The Sandhill Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,830 per month. The other barbers are paid $1,350 per month. In addition, each barber is paid a commission of $2 per haircut. Other monthly costs are as follows: store rent $830 plus 60 cents per haircut; depreciation on equipment $520; barber supplies 40 cents per haircut; utilities $320; and advertising $250. The price of a haircut is $13. (a) Determine the variable cost per haircut and the total monthly xed costs. (Round variable cost to 2 decimal places, e.g. 15.25.) Variable cost $ per haircut Total monthly xed costs $ The Sandhill Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $1,830 per month. The other barbers are paid $1,350 per month. In addition, each barber is paid a commission of $2 per haircut. Other monthly costs are as follows: store rent $830 plus 60 cents per haircut; depreciation on equipment $520; barber supplies 40 cents per haircut; utilities $320; and advertising $250. The price of a haircut is $13. (a) Determine the variable cost per haircut and the total monthly xed costs. (Round variable cost to 2 decimal places, e.g. 15.25.) Variable cost ' per haircut $ Total monthly xed costs $
