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Allison Cobb sells homemade knit scarves for $20 each at local craft shows. Her contribution margin ratio is 62.5%. Currently, the craft show entrance fees

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Allison Cobb sells homemade knit scarves for $20 each at local craft shows. Her contribution margin ratio is 62.5%. Currently, the craft show entrance fees cost Allison $500 per year. The craft shows are raising their entrance fees by 25% next year. How many extra scarves will Allison have to sell next year just to pay for rising entrance fee costs? Begin by identifying the general formula to compute the breakeven sales in units. ( (1) (2) + (3) = Breakeven sales in units Allison will have to sell extra scarves next year just to pay for rising entrance fee costs. (2) (1) O Operating income Contribution margin per unit Units sold Contribution margin ratio O Variable expenses O Fixed expenses Operating income Contribution margin per unit Units sold Contribution margin ratio O Variable expenses O Fixed expenses (3) Operating income Contribution margin per unit Units sold Contribution margin ratio O Variable expenses O Fixed expenses

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