Gabby Kittson sells homemade knit scarves for $ 14 each at local craft shows. Her contribution margin

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Gabby Kittson sells homemade knit scarves for $ 14 each at local craft shows. Her contribution margin ratio is 62.5%. Currently, the craft show entrance fees cost Gabby $ 1,400 per year. The craft shows are raising their entrance fees by 25% next year. How many extra scarves will Gabby have to sell next year just to pay for rising entrance fee costs?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Managerial Accounting

ISBN: 978-0133428377

4th edition

Authors: Karen W. Braun, Wendy M. Tietz

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