Tan-O-Rama is a local tanning salon. Its regression output is as follows: Intercept X Variable 1 Coefficients 4,591,46 2.42 Suppose 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.
Tan-O-Rama is a local tanning salon. Its regression output is as follows: Intercept X Variable 1 Coefficients 4,591,46 2.42 Suppose 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Tan-O-Rama is a local tanning salon. Its regression output is as follows:
Coefficients
4,591,46
2.42
Suppose 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.
Intercept
X Variable 11
Complete this question by entering your answers in the tabs below.
Unit CM
CM Ratio
Total CM
Calculate the unit contribution margin.
Note: Round your final answer to 2 decimal places.
Unit Contribution Margin
Transcribed Image Text:Tan-O-Rama is a local tanning salon. Its regression output is as follows:
Coefficients
4,591.46
2.42
Suppose 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.
Intercept
X Variable 1
Complete this question by entering your answers in the tabs below.
Unit CM
CM Ratio
Calculate contribution margin ratio.
Note: Round your answers to 2 decimal places and contribution margin ratio percentage to 2 decimal places (i.e..1234 should
be entered as 12.34%.)
Intercept
X Variable 1
Total CM
Tan-O-Rama is a local tanning salon. Its regression output is as follows:
Unit CM
Coefficients
4,591.46
2.42
Suppose 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.
W
CM Ratio
Contribution Margin Ratio
Complete this question by entering your answers in the tabs below.
Total CM
Calculate the total contribution margin if the shop books 1,300 tanning sessions this month.
Note: Round your answers to 2 decimal places and "Total Contribution Margin" to the nearest whole dollar.
Total Contribution Margin
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