Hoffman is evaluating a business opportunity to sell grooming kits at dog shows. Nolan can buy the grooming kits at a wholesale cost of $30 per set. He plans to sell the grooming kits for $80 per set. He estimates fixed costs such as travel? costs, booth rental? cost, and lodging to be $900 per dog show. Requirements
1. Determine the number of grooming kits NolanNolan must sell per show to breakeven.
2. Assume NolanNolan wants to earn a profit of $ 1 comma $1,100 per show.
?a) Determine the sales volume in units necessary to earn the desired profit. ?
b) Determine the sales volume in dollars necessary to earn the desired profit.
?c) Using the contribution margin? format, prepare an income statement? (condensed version) to confirm your answers to parts a and b.
3. Determine the margin of safety between the sales volume at the? break-even point and the sales volume required to earn the desired profit. Determine the margin of safety in both sales? dollars, units, and as a percentage.