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A value-driven car manufacturer, Blossom, started its business more than 50 years ago, making and selling a sedan body style. Sedans were popular at the
A value-driven car manufacturer, Blossom, started its business more than 50 years ago, making and selling a sedan body style. Sedans were popular at the time, and this one drove the success of Blossom for years due to its practical yet stylish nature. As times changed, Blossom designed models in different body styles, and those models have outpaced sedans, as follows. Sales Variable costs Contribution margin Fixed costs Sedan $1,212,000 698,000 514,000 822,400 Operating income (loss) $(308,400) SUV $4,171,000 1,993,000 2,178,000 892,000 $1,286,000 Truck $3,906,000 1,790,000 2,116,000 1,205,000 $911,000 Van $2.015.000 1,104,000 911,000 794,000 $117,000
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