Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Relly Men's Clothing's revenues and cost data for 2017 are as follows: Click the icon to view the data) Rally, the owner of the store,

image text in transcribed
image text in transcribed
Relly Men's Clothing's revenues and cost data for 2017 are as follows: Click the icon to view the data) Rally, the owner of the store, is unhappy with the operating results. An analysis of other operating costs reveals that includes $45,000 variable costs, which vary with sales volume, and $15.000 (d) costs ead the requirements quirement 1. Compute the contribution margin of O'Rally Men's Clothing etermine the formula to calculate the contibution margin, then enter the amounts in the formule to compute the contribution margin of Celly Man's Clothing Contribution margin Requirement 2. Compute the contribuon margin percentage Determine the formula to calculate the contribution margin percentage, then enter the amounts in the formulate compute the contin margin percentage (the rest as a whole percentage XX) Contribution margin percentage Requirement 3. Mr. Rallyestimates that he can create units sold, and hence reverts by 26% by Mauringon verting cows of 13.000 Call the impact of the additional verting costs on creating income Dalemine the form to solve for the amount then compte the formula Change in operating income Requirement. Whether actions can Mr. Rally take to improve operating room? To improve operating income Me Oily must find ways to Choose from any store any number in the input fol decrease are cons, decreased cons or increasing prices decreased acrosseling prices of variable costs muarama the same Save for at Revenues $ 500,000 225,000 Cost of goods sold (all variable costs) 275,000 Gross margin Operating costs: Salaries fixed $ 170,000 40,000 Sales commissions (8% of sales) Depreciation on equipment and fixtures Store rent ($4,500 per month) 12,000 54,000 60,000 336,000 Other operating costs $ (61,000) Operating income (loss)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Oil And Gas Accounting

Authors: Charlotte Wright

6th Edition

9781593703639

More Books

Students also viewed these Accounting questions

Question

6.3 Explain the importance of application forms.

Answered: 1 week ago