Question: M5-12 (Algo) Calculating Unit Contribution Margin and Contribution Margin Ratio [LO 5-5] Tan-O-Rama is a local tanning salon. Its regression output is as follows: Coefficients

M5-12 (Algo) Calculating Unit Contribution Margin and Contribution Margin Ratio [LO 5-5]

Tan-O-Rama is a local tanning salon. Its regression output is as follows:

Coefficients
Intercept 4,582.67
X Variable 1 3.44

Suppose that the company charges $6.60 per tanning session.

Required:

Calculate the unit contribution margin.

Calculate contribution margin ratio.

Calculate the total contribution margin if the shop books 1,300 tanning sessions this month.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

M 5 - 1 2 ( Algo ) Calculating Unit Contribution Margin and Contribution Margin Ratio [ LO 5 - 5 ] Tan - O - Rama is a local tanning salon. Its regression output is as follows: \ table [ [ ,...

Q:

2 questions please help. thank you. M5-12 (Algo) Calculating Unit Contribution Margin and Contribution Margin Ratio [LO 5-5) Sherri's Tan-O-Rama is a local tanning salon. Its regression output is as...

Q:

M5-12 (Algo) Calculating Unit Contribution Margin and Contribution Margin Ratio [LO 5-5] Sherris Tan-O-Rama is a local tanning salon. Its regression output is as follows: Coefficients...

Q:

M5-12 (Algo) Calculating Unit Contribution Margin and Contribution Margin Ratio (LO 5-5) Sherri's Tan-O-Rama is a local tanning salon. Its regression output is as follows: Intercept X Variable 1...

Q:

M5-10 Calculating Unit Contribution Margin and Contribution Margin Ratio [LO 5-5] Sherris Tan-O-Rama is a local tanning salon. Its regression output is as follows: Coefficients Intercept 4,578.77 X...

Q:

M5-10 Calculating Unit Contribution Margin and Contribution Margin Ratio [LO 5-5 Shermi's Tan-O-Rama is a local tanning salon. ts regression output is as follows: ,551.41 3.17 X Variable 1 Suppose...

Q:

M 5 - 1 2 ( Algo ) Calcul ting Unit Contribution Margin and Contribution Margin Ratio [ LO 5 - 5 ] 1 . 5 Tan - O - Rama is a local tanning salon. Its regression output is as follows: points \ table [...

Q:

Sherri's Tan-O-Rama is a local tanning salon. Its regression output is as follows: Intercept X Variable 1 Coefficients 4,637.36 3.05 Suppose that the company charges $7.60 per tanning session....

Q:

Sherri's Tan-O-Rama is a local tanning salon. Its regression output is as follows: Intercept x Variable 1 Coefficienta 4.557.77 2.72 Suppose that the company charges $10.00 per tanning session....

Q:

Sherri's Tan-O-Rama is a local tanning salon. Its regression output is as follows: Intercept X Variable 1 Coeficienta 4,595.78 2.12 Suppose that the company charges $8.40 per tanning session....

Q:

The following facts apply to Walken Company during December 2013: a. Walken began December with an accounts receivable balance (net of bad debts) of 25,000. b. Walken had credit sales of 85,000. c....

Q:

Raman's height is 33 % more than that of Dhirendra. If Dhirendra's height is 60 inches, then how much percent Dhirendra's height is less than that of Raman? 1. 10% 2. 50% 3. 25% 4. 33 % None of these...

Q:

Your Aunt has agreed to lend you $ 9 , 7 5 0 today to help cover your tuition and living expenses thisyear,a . b . c . Your Aunt will charge you 4 . 5 % compound interest per year on the borrowed...

Q:

9. (15 points) A company is considering a new project that requires an investment of \$5 million. The project is expected to generate cash flows of $2 million in year 1,$3 million in year 2, and $4...

Q:

2. What is an information system? How does it work? What are its management, organization, and technology components and why are complementary assets essential for ensuring that information systems...

Q:

1. How are information systems transforming business, and why are they so essential for running and managing a business today?

Q:

7. Explain how culture can function as resistance to dominant value systems.