1) Break even unit = 560000/ (80-55) = 22400 Units
Break even sales = 22400*80 = $1792000
2) Contribution income statement
Sales (23000*80) | 1840000 |
Variable cost (23000*55) | 1265000 |
Contribution margin | 575000 |
Fixed cost | 560000 |
Operating income | 15000 |
3) Margin of safety = (35000-22400)*80 = 1008000
Margin of safety (%) = 1008000/2800000 = 36%
4) New break even point = 740625/(80-40.50) = 18750 Units
Sales (23000*80) | 1840000 |
Variable cost (23000*40.50) | 931500 |
Contribution margin | 908500 |
Fixed cost | 740625 |
Operating income | 167875 |
Bubba's Western Wear is a western hat retailer in Lubbock, Texas. Although Bubba's carries numerous styles...
Bubba's Western Wear is a western hat retailer in Lubbock, Texas. Although Bubba's carries numerous styles has approximately the same price and invoice (purchase) cost, as shown in the following table. Sales personn to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really hum at Bubba's has been great. The business is very competitive, however, and Bubba, the owner, has relied on h courteous staff to attract and retain customers who otherwise might...
Bubba's Western Wear is a western hat retailer in Lubbock, Texas. Although Bubba's carries numerous styles of western hats, each hat has approximately the same price and invoice (purchase) cost, as shown in the following table. Sales personnel receive a commission to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales growth at Bubba's has been great. The business is very competitive, however, and Bubba, the owner, has relied on...
1 Bubba's Western Wear is a western hat retailer in Lubbock, Texas. Although Bubba's carries numerous styles of western hats, each hat has approximately the same price and invoice (purchase) cost, as shown in the following table. Sales personnel receive a commission to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales growth at Bubba's has been great The business is very competitive, however, and Bubba, the owner, has relied...
Bubba's Western Wear Is a western hat retailer In Lubbock, Texas. Although Bubba's carries numerous styles of western hats, each hat has approximately the same price and Invoice (purchase) cost, as shown in the following table. Sales personnel receive a commission to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales growth at Bubba's has been great. The business is very competitive, however, and Bubba, the owner, has relied on...
Bubba’s Western Wear is a western hat retailer in Lubbock, Texas. Although Bubba’s carries numerous styles of western hats, each hat has approximately the same price and invoice (purchase) cost, as shown in the following table. Sales personnel receive a commission to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales growth at Bubba’s has been great. The business is very competitive, however, and Bubba, the owner, has relied on...
Bubba’s Western Wear is a western hat retailer in Lubbock, Texas. Although Bubba’s carries numerous styles of western hats, each hat has approximately the same price and invoice (purchase) cost, as shown in the following table. Sales personnel receive a commission to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales growth at Bubba’s has been great. The business is very competitive, however, and Bubba, the owner, has relied on...
Bubba’s Western Wear is a western hat retailer in Lubbock, Texas. Although Bubba’s carries numerous styles of western hats, each hat has approximately the same price and invoice (purchase) cost, as shown in the following table. Sales personnel receive a commission to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales growth at Bubba’s has been great. The business is very competitive, however, and Bubba, the owner, has relied on...
Answer questions 1 to 4 for Bubba's Western Wear. Bubba's Western Wear is a western hat retailer in Lubbock, Texas. Although Bubba's carries numerous styles of western hats, each hat has approximately the same price and invoice (purchase) cost, as shown in the following table. Sales personnel receive a commission to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales growth at Bubba's has been great. The business is very...
Bubba's Western Wear is a western hat retaliler in as shown in the tollowing table. Sales personnel recelve a commission to encourage them to be more growth at Bubba's has been great. The business is very competitive, however, and Bubba, the Lubbock Texas. Although Bubbas carries numerous styles of westen hats, each hat has approximately the same aggressive in ther sales efforts Currently, the Lubbock economy is realy humming, and sales price and invoice (purchase) cost owner, has relied on...
please fill in the blank! thank you! Bubba's Western Wear is a western hat retailer in Lubbock, Texas. Although Bubba's carries numerous styles of western hats, each hat has approximately the same price and invoice (purchase) cost, as shown in the following table. Sales personnel receive a commission to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales growth at Bubba's has been great. The business is very competitive, however,...