Tan-O-Rama is a local tanning salon. Its regression output is as follows:Coefficients4,591,462.42Suppose that the company charges $6.20 per tanning session.Required:1. Calculate the unit contribution margin.2. Calculate contribution margin ratio.3. Calculate the total contribution margin if the shop books 1,300 tanning sessions this month.InterceptX Variable 11Complete this question by entering your answers in the tabs below.Unit CMCM RatioTotal CMCalculate the unit contribution margin.Note: Round your final answer to 2 decimal places.Unit Contribution Margin

CONTRIBUTION MARGIN Contribution Margin is Computed by deducting Total Variable Cost From Total…

Answered: Tan-O-Rama is a local tanning salon.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Muscle Beach, Inc., makes three models of high-performance weight-training benches. Current operating data are summarized here: MegaMusclePowerGymProForceSelling price per unit$141 $194 $281 Contribution margin per unit 42 76 57 Monthly sales volume—units 3,030 2,010 1,080 Fixed expenses per month Total of $315,600Calculate the contribution margin ratio of each product b. Calculate the firm's overall contribution margin ratio. c. Calculate the firm's monthly break-even point in sales dollars. d. Calculate the firm's monthly operating income. e-1. Management is considering the elimination of the ProForce model due to its low sales volume and low contribution margin ratio. As a result, total fixed expenses can be reduced to $263,850 per month. Assuming that this change would not affect the other models, what would be the effect on net operating income. f-1. Assume the same facts as in requirement e-1. Assume also that the sales volume for the PowerGym model will increase by 492…
Heather Hudson makes stuffed teddy bears. Recent information for her business follows: Selling price per bear Total fixed costs per month Variable cost per bear $31.50 1,729.00 18.50 Required: If she sells 289 bears next month, determine the margin of safety in units, in sales dollars, and as a percentage of sales. Note: Round your intermediate calculations to the nearest whole number and round your "Percentage of Sales" answer to 2 decimal places. (i.e. 0.1234 should be entered as 12.34%. Round your "Margin of safety (Dollars)" answer to the nearest whole number.) Margin of safety (Units) Margin of safety (Dollars) Margin of safety percentage %
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $57,600 38,400 $ 19, 200 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. Required 1 Required 2 Required 3 Complete this question by entering your answers in the tabs below. Sales Variable expenses Contribution margin Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Engberg Company Contribution Income…
Haresh
Sherri’s Tan-O-Rama is a local tanning salon. Its regression output is as follows: Coefficients Intercept 4,649.75 X Variable 1 2.12 Suppose that the company charges $7.40 per tanning session. Required: 1. Calculate the unit contribution margin.2. Calculate contribution margin ratio.3. Calculate the total contribution margin if the shop books 1,000 tanning sessions this month.
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches. Match each of the following costs of producing T-shirts with the appropriate classification. Clear All Ink used for screen printing Warehouse rent of $8,000 per month plus $0.50 per square foot of storage used Thread Electricity costs of $0.038 per kilowatt-hour Janitorial costs of $4,000 per month Fixed cost Variable cost Mixed cost
Liberty Coffee sells three small coffees for every large coffee. A small coffee sells for $3.00, with a variable expense of $1.50. A large coffee sells for $5.00, with a variable expense of $2.50.Requirements1. Determine the coffee shop’s monthly breakeven point in the numbers of small coffees and large coffees. Prove your answer by preparing a summary contribution margin income statement at the breakeven level of sales. Show only two categories of expenses: variable and fixed.2. Compute the coffee shop’s margin of safety in dollars.3. Use the coffee shop’s operating leverage factor (using the July contribution margin income statement) to determine its new operating income if sales volume increases 12%. Prove your results using the contribution margin income statement format. Assume that sales mix remains unchanged.
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below. Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $ 112,000 34,600 $77,400 Makeover $ 56,000 7,400 $ 48,600 Total $ 168,000 42,000 126,000 86,400 $ 39,600 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 11 Required 21 Required 3 Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. (Do not round intermediate calculations, Round your…
Sammamish Brick, Inc., manufactures bricks using clay deposits on the company's property. Raw clays are blended and then extruded into molds to form unfired bricks. The unfired bricks are then stacked onto movable metal platforms and rolled into the kiln where they are fired until dry. The dried bricks are then packaged and shipped to retail outlets and contractors. The bottleneck in the production process is the kiln, which is available for 2,200 hours per year. Data concerning the company's four main products appear below. Products are sold by the pallet. Gross revenue per pallet Contribution margin per pallet Annual demand (pallets) Hours required in the kiln per pallet Traditional Brick $769 $480 75 10 Textured Facing $1,331 $ 620 Cinder Block $608 $388 85 4 Roman Brick $886 $455 95 10 150 No fixed costs could be avoided by modifying how much is produced of any product. Required: 1a. Calculate the total hours required in the kiln to satisfy demand for all products. Traditional…
Lucido products markets two computer games: claimjumper and makeover. A contribution format income statement for a recent month for the two games appears in top of picture. prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products.
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Sales Variable expenses Contribution margin Fixed expenses Net operating income References Required: 1. What is the overall contribution margin (CM) ratio for the company? Ass 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. complete all parts P References Sales Claimjumper $ 94,000 23,560 $ 70,440 $ 42,360 What is the overall contribution margin (CM) ratio for the company? Overal CM ratio Net operating income (loss) Makeover $ 47,000 4,640 Required 1 Required 2 What is the company's overall break-even point in dollar sales? (Do not round intermediate calculations.) Overall brouk-even point Complete this question by entering your answers in the tabs below.…
es A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $290 per pair and cost $182.70 per pair in variable costs to make. (Round your answers to 2 decimal places.) (1) Compute the contribution margin per pair. Contribution margin (2) Compute the contribution margin ratio. Choose Numerator: Choose Denominator: = Contribution Margin Ratio Contribution margin ratio = G Check n

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