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A new line of athletic clothing is being introduced at Bonita's-a regional sporting goods store. A lightweight, warm, weather-proof hoodie in this line is
A new line of athletic clothing is being introduced at Bonita's-a regional sporting goods store. A lightweight, warm, weather-proof hoodie in this line is its key introductory item, expected to bring attention to the entire line and to the sporting goods store itself. The problem is that after Bonita, the owner, agreed to bring this new product into the store, the staff lost some of the cost information that was used to estimate the profitability of the hoodies. All they could find in their records was the following information. Budgeted operating income $65,000 per month Total sales $100,000 per month Variable cost per unit $20 per unit Related foxed costs $10,000 per month (a) Determine the following missing information: sales volume used in the estimate, selling price per unit, and contribution margin per unit. Sales volume used in the estimate Selling price Contribution margin 4 units per unit per unit
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