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Athena Arkin sells homemade knit scarves for $14 each at local craft shows. Her contribution margin ratio is 62.5%. Currently, the craft show entrance fees
Athena Arkin sells homemade knit scarves for $14 each at local craft shows. Her contribution margin ratio is 62.5%. Currently, the craft show entrance fees cost Athena $1,400 per year. The craft shows are raising their entrance fees by 25% next year. How many extra scarves will Athena 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. Operating income Fixed expenses Contribution margin per unit )/ Breakeven sales in units extra scarves next year just to pay for rising entrance fee costs. Athena will have to sell
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