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2. Crane Footwear Co. produces high-quality shoes. To prepare for next year's marketing campaign, the company's controller has prepared the following information for the current
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Crane Footwear Co. produces high-quality shoes. To prepare for next year's marketing campaign, the company's controller has prepared the following information for the current year, 2022: The company controller has set the revenue target for 2023 at $10,394,400 (or 56,800 pairs). He believes an additional marketing cost of $448,000 for advertising in 2023 , with all other costs remaining constant, will be necessary to attain the revenue target. Calculate the operating income for 2023 if the additional $448,000 is spent and the revenue target is met. Crane Footwear Co. produces high-quality shoes. To prepare for next year's marketing campaign, the company's controller has prepared the following information for the current year, 2022: Blossom Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles 25%, standard tapered candles 50%, and large scented candles 25%. The contribution margin ratio of each candle type is as follows: If the company's fixed costs are $488,400 per year, what is the dollar amount of each type of candle that must be sold to break even? (Round weighted-average contribution margin ratio to 2 decimal places, e.g. 15.25% and final answer to 0 decimal places, e.g. 1,545.)Step by Step Solution
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