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Assume that a gourmet food manufacturer has considered renting a booth at a local mall to sell gift boxes of candy, nuts, and cookies during
Assume that a gourmet food manufacturer has considered renting a booth at a local mall to sell gift boxes of candy, nuts, and cookies during the holiday season. The fixed costs to rent and operate the booth would be $26,550. The unit contribution margins and sales mix anticipated by the company are as follows: Candy Nuts Cookies Unit Contribution Margin Sales Mix $1.25 $2.00 $1.25 50% 30% 20% What would be the weighted average contribution margin? Show your calculation. gift To break even, the company would need to sell boxes (show your calculation). Then after determining how many boxes are needed, what would be the breakout (sales mix) per each item (candy, nuts, cookies)
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