Question: Return to question sales, Bubba is also finding the management of certain aspects of the business more difficult, such as restocking inventory and hiring and

Return to question sales, Bubba is also finding the management of certain aspects of the business more difficult, such as restocking inventory and hiring and training new salespeople. Sales price Per unit variable expenses Purchase cost Sales commissions Total per unit variable costs Total annual fixed expenses Advertising Rent Salaries Total fixed expenses Required: $ 80.00 32.50 22.50 $ 55.00 $ 207,500 203,000 320,500 $ 731,000 1. Calculate the annual breakeven point, both in terms of units and in terms of sales dollars. 2. If Bubba's sells 30,000 hats, what is its before-tax income or loss? Support your answer by preparing a contribution income statement. 3. If Bubba's sells 43,000 hats, what is its margin of safety (MOS) in dollars and MOS ratio? 4. Bubba is considering the elimination of sales commissions completely and increasing salaries by $254,625 annually. What would be Return to q 1. Calculate the annual breaeven point, botn in terms of units and in terms of sales dollars. 2. If Bubba's sells 30,000 hats, what is its before-tax income or loss? Support your answer by preparing a contribution income statement. 3. If Bubba's sells 43,000 hats, what is its margin of safety (MOS) in dollars and MOS ratio? 4. Bubba is considering the elimination of sales commissions completely and increasing salaries by $254,625 annually. What wo the new breakeven point in units? What would be the before-tax income or loss if 30,000 hats are sold with the new salary plan Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 If Bubba's sells 43,000 hats, what is its margin of safety (MOS) in dollars and MOS ratio? (Round "MOS ratio answer to 1 decimal place.) Required 1 Required 2 Required 3 Required 4 If Bubba's sells 43,000 hats, what is its margin of safety (MOS) in de decimal place.) Margin of safety (MOS) in dollars $ 13,760 x MOS ratio 32.0 % < Required 2

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