# Module 8 Assignment Fit To Be Tied sells ties for $25. The ties are purchased for $15 from the…

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Module 8 Assignment Fit To Be Tied sells ties for $25. The ties are purchased for $15 from the… 1 answer below » Module 8 Assignment Fit To Be Tied sells ties for $25. The ties are purchased for $15 from the supplier. Fixed costs are budgeted at $4,000 per month for sales volumes between 0 and 1,000 units. Fit To Be Tied has been selling 500 ties per month. Requirements: A Determine the monthly breakeven sales in units and dollars. Breakeven sales in units = units Breakeven sales in dollars = B If the target profit is $3,500, what monthly sales level is needed to reach this goal? Units to reach target profit of $3,500 = C units Calculate Fit To Be Tied’s current margin of safety in units, View complete question » Module 8 Assignment Fit To Be Tied sells ties for $25. The ties are purchased for $15 from the supplier. Fixed costs are budgeted at $4,000 per month for sales volumes between 0 and 1,000 units. Fit To Be Tied has been selling 500 ties per month. Requirements: A Determine the monthly breakeven sales in units and dollars. Breakeven sales in units = units Breakeven sales in dollars = B If the target profit is $3,500, what monthly sales level is needed to reach this goal? Units to reach target profit of $3,500 = C units Calculate Fit To Be Tied’s current margin of safety in units, in sales dollars and as a percentage. Explain what these calculations tell us about Fit To Be Tied. Margin of safety in units = units Margin of safety in dollars = Margin of safety as a percentage = D At Fit To Be Tied’s current level of sales, what is its operating leverage factor? If sales volume decreases by 5%, what will happen to operating income? Operating leverage factor = E If Fit To Be Tied decreases its sales price to $20 to remain competitive, what happens to Fit To Be Tied’s breakeven point? F Fit To Be Tied has decided to expand its product line to include dress socks. A pair of dress socks will sell for $12 and have a cost of $3. Fixed costs will not change and for every tie that is sold at the decreased sales price of $20, it is expected that 3 pairs of dress socks will be sold. Calculate Fit To Be Tied’s weightedaverage contribution margin per unit and determine the number of units of each product it must sell to break even. Weightedaverage contributon margin per unit = Breakeven sales of ties = ties Breakeven sales of dress socks = dress socks Attachments: Q.-Attachment….xlsx View less » Sep 07 2015 03:58 PM