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B.The following is a pro forma income statement for Crazy Harry's. Use the numbers to calculate the Break even. Crazy Harry's Pro Forma Income Statement Sales $96,000 Cost of Goods Sold 46,240 Gross Profit $49,760 Fixed Expenses Rent $2,400 Insurance 3,000 Salaries 16,500 Taxes 1,100 Miscellaneous Fixed Expenses 900 Total Fixed Expenses $23,900 Variable Expenses Wages $11,200 Advertising 5,700 Benefits 2,800 Other Variable Expenses 1,120 Total Variable Expenses $20,080 Net Profit $5,040 a. Identify and Total Crazy Harry's Variable costs b. Calculate Crazy Harry's Contribution Margin. c. Calculate Harry's break-even sales point. d. Create a break-even chart for Harry.

B.The following is a pro forma income statement for Crazy Harry's. Use the numbers to calculate the Break even. Crazy Harry's Pro Forma Income Statement Sales $96,000 Cost of Goods Sold 46,240 Gross Profit $49,760 Fixed Expenses Rent $2,400 Insurance 3,000 Salaries 16,500 Taxes 1,100 Miscellaneous Fixed Expenses 900 Total Fixed Expenses $23,900 Variable Expenses Wages $11,200 Advertising 5,700 Benefits 2,800 Other Variable Expenses 1,120 Total Variable Expenses $20,080 Net Profit $5,040 a. Identify and Total Crazy Harry's Variable costs b. Calculate Crazy Harry's Contribution Margin. c. Calculate Harry's break-even sales point. d. Create a break-even chart for Harry.

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 22Q: The following is select account information for August Sundries. Sales: $850,360; Sales Returns and...
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B.The following is a pro forma income statement for Crazy Harry's. Use the numbers to calculate the Break even. Crazy Harry's Pro Forma Income Statement Sales $96,000 Cost of Goods Sold 46,240 Gross Profit $49,760 Fixed Expenses Rent $2,400 Insurance 3,000 Salaries 16,500 Taxes 1,100 Miscellaneous Fixed Expenses 900 Total Fixed Expenses $23,900 Variable Expenses Wages $11,200 Advertising 5,700 Benefits 2,800 Other Variable Expenses 1,120 Total Variable Expenses $20,080 Net Profit $5,040 a. Identify and Total Crazy Harry's Variable costs b. Calculate Crazy Harry's Contribution Margin. c. Calculate Harry's break-even sales point. d. Create a break-even chart for Harry.
Transcribed Image Text:B.The following is a pro forma income statement for Crazy Harry's. Use the numbers to calculate the Break even. Crazy Harry's Pro Forma Income Statement Sales $96,000 Cost of Goods Sold 46,240 Gross Profit $49,760 Fixed Expenses Rent $2,400 Insurance 3,000 Salaries 16,500 Taxes 1,100 Miscellaneous Fixed Expenses 900 Total Fixed Expenses $23,900 Variable Expenses Wages $11,200 Advertising 5,700 Benefits 2,800 Other Variable Expenses 1,120 Total Variable Expenses $20,080 Net Profit $5,040 a. Identify and Total Crazy Harry's Variable costs b. Calculate Crazy Harry's Contribution Margin. c. Calculate Harry's break-even sales point. d. Create a break-even chart for Harry.
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