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Ferrell's Beanery is a locally owned specialty food product company in Northeast Ohio that has been in existence for over 30 years. Its products include flavored coffees and teas, dips, dressings, sauces, and seasonings.

The company attends a variety of craft and other shows throughout the year and sets up a booth at each show to sell its products. Free samples are offered to show attendees, and the Ferrell's booth is always packed. Shows that Ferrell's attends include the Yankee Peddler Festival in Canal Fulton, Ohio, the Great Big Home + Garden Show at the Cleveland I-X Center, and the Ohio Mart at Stan Hywet in Akron, Ohio. Ferrell's also sells its products online via its website.

Each of the shows that Ferrell's attends has a different booth rental fee. Booth rental fees can range from $ 450 to $ 6,500 for each show. Assume that the booth rental fee at the Great Big Home + Garden Show is $ 2,440 for the ten-day show and that Ferrell's has an average contribution margin ratio of 20% on its products.

Requirement 1. How much in sales does Ferrell's need to break even on the Great Big Home + Garden Show, assuming that the booth rental fee is the only fixed cost of the show? Identify the formula and then compute the breakeven point in dollars. (Complete all answer boxes. Enter a "0" for any zero amounts. Enter ratios, if any, as a decimal to two places, X.XX.) Breakeven sales = in dollars + ) Di + Requirement 2. The Great Big Home + Garden Show runs for ten days. How much, on average, must Ferrell's sell each day of the show to break even? Ferrell's must sell $ L e ach day to break even. Requirement 3. Assume that 75,000 people visit the home and garden show each year spread evenly throughout the ten-day period. If 8% of the attendees purchase from Ferrell's at the show, how much must each customer purchase from Ferrell's for the company to break even on the booth rental fee? Identify the formula and then compute the purchase amount needed per customer. (Round your answer to the nearest cent.) = Purchase amount per customer Requirement 4. Assume now that Ferrell's wants to make a target profit of $4,500 for the Great Big Home + Garden Show. What sales volume will allow Ferrell's to achieve this target profit? Ferrell's sales volume must be $ achieve the target profit. a) 0 Breakeven sales in dollars Contribution margin per unit Contribution margin ratio Fixed expenses Re Operating income Total number of customers Units sold Variable expenses - 0 1

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