Assume Hairy-Cairy Salon, a hair styling salon in Matthews, NC, provides cuts, perms, and hairstyling services. Annual fixed costs are $225,000, and variable costs are 40 percent of sales revenue. Sales revenue totaled $450,000. Determine the sales dollar volume required for an annual pretax profit of $200,000.
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Assume Hairy-Cairy Salon, a hair styling salon in Matthews, NC, provides cuts, perms, and hairstyling services. Annual fixed costs are $225,000, and variable costs are 40 percent of sales revenue. Sales revenue totaled $450,000. Determine the sales dollar volume required for an annual pretax profit of $200,000.
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- Western Repair Shop has a monthly target operating income of $50,000. Variable expenses are 55% of sales and monthly fixed expenses are $9,600. Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Western Repair Shop's margin of safety as a percentage of target sales. 3. What is Western Repair Shop's operating leverage factor at the target level of operating income? 4. Assume that the repair shop reaches its target. By what percentage will Western Repair Shop's operating income fall if sales volume declines by 16%? Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Begin by identifying the formula to compute the margin of safety. Target sales in dollars Margin of safety in dollars The margin of safety is $. (Round interim calculations up to the nearest whole dollar and your final answer up to the nearest whole dollar.) Break-even sales in dollars =Calculate the number of helmets Head-First must sell to earn operating income of $81,900. _____________helmets Refer to the list below for the exact wording of text items within your income statement. Amount Descriptions Operating income Operating loss Sales Total contribution margin Total fixed cost Total variable cost Units to Earn Target Income Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the number of helmets Head-First must sell to earn operating income of $81,900. 2. Check your answer by preparing a contribution margin income statement based on the number of units calculatedAssume Touch of Gray Salon, a Berkeley hair salon provides various hair styling services, including cuts, perms and shaves. Annual fixed costs are $225,000 and variable costs are 45% of sales revenue. Last year’s revenue totaled $450,000. Required: Determine the break-even point in sales dollars Determine the sales dollars required for an annual pretax profit of $200,000
- The manager of Dukey's Shoe Station estimates operating costs for the year will include $465,000 in fixed costs. Required: a. Find the break-even point in sales dollars with a contribution margin ratio of 50 percent. b. Find the break-even point in sales dollars with a contribution margin ratio of 30 percent. c. Find the sales dollars required to generate a profit of $250,000 for the year assuming a contribution margin ratio of 50 percent. Complete this question by entering your answers in the tabs below. Required A Required B Required C Find the break-even point in sales dollars with a contribution margin ratio of 50 percent. Break-even point in sales dollars Find the break-even point in sales dollars with a contribution margin ratio of 30 percent. Break-even point in sales dollars Required A Required B Required C Find the sales dollars required to generate a profit of $250,000 for the year assuming a contribution margin ratio of 50 percent. Sales dollars requiredThe managet of Dukey' s Shoe Station Estimates operating costs for the year will include $450,000 in fixed costs. A. Find the break-even point in sales dollars with a contribution margin ration of 40 percent B. Find the break-even point in sales dollars with a contribution margin ration of 25 percent C. Find the sales dollar required to generate a profit of $100,000 for the year assuming a contribution margin ratio of 40 percentReggie'sReggie's Repair Shop has a monthly target profit of $15,000. Variable costs are 75% of sales, and monthly fixed costs are $10,000. Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Reggie's margin of safety as a percentage of target sales.
- Carter's Repair Shop has a monthly target operating income of $20,000. Variable expenses are 60% of sales, and monthly fixed expenses are $8,000. Hint: The contribution margin ratio = 100%- Variable expenses percentage of sales. Read the requirements. Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Begin by identifying the formula to compute the margin of safety. Requirements = Margin of safety in dollars - X 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Carter's margin of safety as a percentage of target sales. 3. What is Carter's operating leverage factor at the target level of operating income? 4. Assume that the company reaches its target. By what percentage will the company's operating income fall if sales volume declines by 12%? Print DoneThe Rolling Creek Textile Mill produces denim. The fixed monthly cost is $21,000, and the variable cost per yard of denim is $0.45. The mill sells a yard of denim for $1.30. a. For a monthly volume of 18,000 yards of denim, determine the total cost, total revenue and profit. b. Determine the annual break-even volume for the Rolling Creek Textile Mill. c. If the maximum operating capacity of the Rolling Creek Textile Mill described in Problem 1 is 25,000 yards of denim per month, determine the break-even volume as a percentage of capacity. ||Robert's Repair Shop has a monthly target profit of $19,500. Variable costs are 75% of sales, and monthly fixed costs are $13,000. Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Robert's margin of safety as a percentage of target sales. 3. Why would Robert's management want to know the shop's margin of safety? ... Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Select the labels and enter the amounts to compute Robert's Repair Shop's monthly margin of safety in dollars. Target sales in dollars Breakeven sales in dollars Margin of safety in dollars
- Head-First Company plans to sell 4,200 bicycle helmets at $71 each in the coming year. Variable cost is 59% of the sales price; contribution margin is 41% of the sales price. Total fixed cost equals $50,000 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the sales revenue that Head-First must make to earn operating income of $66,440 by using the point in sales equation. 2. Check your answer by preparing a contribution margin income statement based on the sales dollars calculated in Requirement 1. please answer do not image.Micol & Co. Ltd sells a single product, baby hamper, with a selling price of $150 and variable costs per baby hamper of $100. The company’s monthly fixed expenses are $200,000. required: 1: How many baby hampers will Micol & Co. Ltd need to sell (in sales dollars) in order to realize a target profit of $500,000? 2: Construct a contribution margin income statement for the first month (in July) that reflects $2,400,000 in sales revenue for Micol & Co. Ltd. 3) Provide two suggestions to Micol & Co. Ltd on how it can increase profit in subsequent months?Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Variablecost is 35% of the sales price; contribution margin is 65% of the sales price. Total fixed costequals $78,000 (includes fixed factory overhead and fixed selling and administrative expense). Required:1. Calculate the sales revenue that Chillmax must make to earn operating income of $81,900by using the point in sales equation.2. Check your answer by preparing a contribution margin income statement based on thesales dollars calculated in Requirement 1.Brief Exercise 7-30 Break-Even Point in U