Roan Donaldson is evaluating a business opportunity to sell premium car wax at vintage car shows. The wax is sold in 64 ounce tubs. Roan can buy the premium wax it a wholesale cost of $32 per tub Ho plans to well the premium wax for $62 por tub. Ho estimates fixed costs such as travel costs, booth rental cost and lodging to be $600 per car show. Read the requirements Requirement 1. Determine the number of tubs Roan must soll por 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 Fred expenses Operating income - Contribution margin perunt Sales in units Roan munte Roan must 20 tuos per show to breakeven Requirement 21. Determine the sales volume in units necessary to earn the desired proft assuming Roan wants to com a profit of 5900 per show was per show to como proft of 5000 per show b. Determine the sales volume in dollars necessary to earn the desired profe assuming Roan warts to earn a pront of 100 per show Beoin by identifying the formula to compute the sales volume in dotare necessary to earn the desired profit Targetsko in dollar Roon mustaches of to eam profit of $900 per show 4. Using the contribution maroin format, prepare an income statement (condensed version) to confirm your answers to parts a and be Condensed Income Statement Less Roan Donaldson is evaluating a business opportunity to so premum car wax at vintago car shows. The wax is sold in 64-ounce tubs Roan can buy me premium wax at a wholesale cost of $32 por tub. He plans to sell the premium wax for $62 per tub He estimates fixed costs such as travel costs booth rental cost and lodging to be $600 pet car show Read the requirements c. Using the contribution margin format, propato an income statement (condensed version) to confirm your antworn to parts a and o. Condensed Income Statement Les Los Noticom Requirements. Determine the margin of safety between the sales volume at the breakiven point and the sales volume required to cam the desired profit. Determine the margin of safety in both dotars.units, and as a percentage Begin by identlying the formula to compute the margin of safety in dollars Margn of safety i dollars The margin of safety in dotaris Now identity the formula to compute the margin of safety in units Margin of safety in uns The margin of safety in untsi units Roan Donaldson is evaluating a business opportunity to sell premium car wax at vintage car shows. The wax is sold in 84 ounce tubs. Roan can buy the premium wax at a wholesale cost of 532 per tub He plans to sell the premium wax for $62 por tub. Ho estimates foed costs such as travel costs, booth rental cost and lodging to be 5600 per car show Read the requirements Less Net income (10) Requirement. Determine the margin of safety between the sales volume at the breakeven point and the sales volume required to eam the desired profit Determine the margin of Safety in both sales dollars Units, and as a percentage Begin by identifying the formula to compute the margin of safety in dollars Margin of safety in dollars The margin of safety in dollars is Now Identify the formula to compute the margin of safety in units Margin of safety in units The margin of safety in units is units Now Identify the formula to compute the margin of safety as a percentago. Margin of safety as a porcentage of forgot sales The margin of safety as a percentage of target sales
