Question: need help with 1 -9 The following information is available for Rita's Snowmobile Rentals, Inc.: Total fixed costs $7,800 Unit sales price $150 per hour
The following information is available for Rita's Snowmobile Rentals, Inc.: Total fixed costs $7,800 Unit sales price $150 per hour Unit variable cost $30 per hour 1) Compute the contribution margin per rental hour. 2) Compute the contribution margin ratio. 3) Compute the break-even point in hours. 4) Compute the break-even point in sales dollars. 5) Calculate the hours needed to earn $27,000 in operating income. 6) If Rita's decreases the sales price to $130 and has no changes in variable or fixed costs, calculate the hours needed to break even. 7) If Rita's decreases the sales price to $130 and has no changes in variable or fixed costs, calculate the hours needed to earn $27,000 in operating income. 8) Suppose Rita's decides to pay their salespeople on commission. With sales price at $150 per unit, variable costs per unit will increase by $15 per unit, while fixed costs will decrease by $2,760. What is the new break-even point in hours? 9) Suppose Rita's decides to pay their salespeople on commission. With sales price at $150 per unit, variable costs per unit will increase by $15 per unit, while fixed costs will decrease by $2,760. What is the number of rental hours needed to earn $27,000 in operating income
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