Tan-O-Rama is a local tanning salon. Its regression output is as followsCoefficients4,601.182.84Suppose that the company charges $9.20 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 1,350 tanning sessions this month.InterceptX Variable 1

Solution: Contribution is the amount of margin that arrives at be reducing total variable costs from…

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Tan-O-Rama is a local tanning salon. Its regression output is as follows: Coefficients 4,601.18 2.84 Suppose that the company charges $9.20 per tanning session. Required: Intercept X Variable 1

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Tan-O-Rama is a local tanning salon. Its regression output is as follows
Coefficients
4,601.18
2.84
Suppose that the company charges $9.20 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 1,350 tanning sessions this month.
Intercept
X Variable 1

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