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Assume the following scenario: You are in charge of a retail category of merchandise at Penney's. You examined your sales results and was planning to
Assume the following scenario:
You are in charge of a retail category of merchandise at Penney's. You examined your sales results and was planning to invest money in the category for a new display and wondered how much business you would have to do to recover your investment of $ So you analyzed the numbers and came up with this:
Unit sales Margin on each item unit contribution of each item
$
$
$
D What is the weighted average contribution for the product line?
E What is the weighted average margin for the product line?
F How many units need to be sold to recover the investment?
F How many units need to be sold to recover the investment?
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