Question: Saved Help Save in Lubbock, Texas. Although Bubba's carries numerous styles of has approximately the same price and invoice (purchase) cost, as shown in the
Saved Help Save in Lubbock, Texas. Although Bubba's carries numerous styles of has approximately the same price and invoice (purchase) cost, as shown in the following table to encourage them to be more aggressive in their sales efforts. Currently, the Lubbock economy is really humming, and sales g at Bubba's has been great. The business is very competitive, however, and Bubba. the owner, has r courteous staff to attract sales, Bubba is also finding the management of certain aspects of the business more difficult, such and training new salespeople. western hats, each hat . Sales personnel receive a commission and retain customers who other wise might go to other western wear stores. Because of the rapid growth in as restocking inventory and hiring Sales price Per unit variable expenses Purchase cost $ 80.00 42.50 Sales commissions 12.50 Total per unit variable costs Total annual fixed expenses Advertising $ 55.00 $107,500 155,800 257,250 Rent salaries Total fixed expenses $519,750 Required 1. Calculate the annual breakeven point, both in terms of units and in terms of sales dollars 2. If Bubba's sells 22.000 hats, what is its before-tax income or loss? Support your answer by preparing a contribution income statement 3. If Bubba's sells 33.000 hats, what is its margin of safety (MOS) and MOS ratio? 4 Bubba is considering the elimination of sales commissions completelv and increasing salaries by $164625 annually What would be
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