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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Computing breakeven sales and sales needed to earn a target profit; performing sensitivity analysis This problem continues the Piedmont Computer Company situation from Chapter 19. Piedmont Computer Company manufactures personal computers and tablets. Based on the latest information from the cost accountant, using the current sales mix, the weighted-average sales price per unit is $750 and the weighed-average variable cost per unit is $450. The company does not expect the sales mix to vary for the next year. Average fixed costs per month are $156,000. Requirements What is the number of units that must be sold each month to reach the breakeven point? If the company currently sells 945 units per month, what is the margin of safety in units and dollars? If Piedmont Computer Company desires to make a profit of $15,000 per month, how many units must be sold? Piedmont Computer Company thinks it can restructure some costs so that fixed costs will be reduced to $90,000 per month, but the…
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Problem 6-58 (Static) Predetermined Rates and Product Profitability: Two Stage Cost Allocation (LO 6-3, 4, 5) Social Media, Inc. (SMI) has two services for users. Toot!, which connects tutors with students who are looking for tutoring services, and TiX, which can be used to buy, sell, or exchange event tickets. For the following year, SMI expects the following results. Toot! TiX Total Users 9,000 15,000 24,000 Revenues $ 1,200,000 $ 800,000 $ 2,000,000 Engineering hours 10,000 6,000 16,000 Engineering cost $ 240,000 $ 360,000 $ 600,000 Administrative costs $ 480,000 The company is considering using a two-stage cost allocation system and wants to assess the effects on reported product profits. The company is considering using Engineering Hours and Users as the allocation base. Additional information follows. Toot! TiX Total Engineering hours 10,000…
The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return. Machine A Machine B Machine C $83,087.40 $73,001.40 322,364.00 276,958.00 486,676.00 Estimated average income $45,130.96 Average investment Oa. Machine B Ob. Machine C Oc. Machine A Od. Machines B and C have the same preferred average rate of return.
1. You have been provided with the following data regarding shipments and costs for Brighton Boutiques: Number of Shipments Received Cost per Receiving Report $202 185 120 105 70 80 87 115 100 $300 $200 $100 $- 0 142 154 20 162 Required: Plot the data points on a scatter graph, and then using the high-low method, determine the cost function of the line that will connect the high and low points on the graph. Does the cost function appear to be linear in nature? 200 175 Graph Template 40 80 60 Number of Shipments 100 120 140
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2.5 The only variable input a janitorial service firm uses to clean offices is workers who are paid a wage, w, of $8 an hour. Each worker can clean four offices in an hour. Use math to determine the variable cost, the average variable cost, and the marginal cost of cleaning one more office. Draw a diagram like Figure 7.1 to show the variable cost, average variable cost, and marginal cost curves. A
Star, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output: Regression Statistics Multiple R 0.9798 R Square 0.9560 Observations 30 Coefficients Standard Error T Stat P-Value Intercept 174,302 60,902 2.86 0.021 Production (X) 11.06 0.9237 11.97 0.000 What total cost would Star predict for a month in which production is 2,000 units? Multiple Choice $21,419 $62,749 $173,282 $196,422
Question is in the image Required:a) Calculate the weighted average unit contribution margin, assuming a constant sales mix. b) How many units of each printer must be sold to break even? c) i) Explain what is margin of safety ii) Calculate in sales units the margin of safety for IPM, assuming projected sales are 25,000 units?
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