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Athena Cobb sells homemade knit scarves for $24 each at local craft shows. Her contribution margin ratio is 62.5%. Currently, the craft show entrance fees
Athena Cobb sells homemade knit scarves for $24 each at local craft shows. Her contribution margin ratio is 62.5%. Currently, the craft show entrance fees cost Athena $1,000 per year. The craft shows are raising their entrance fees by 15% 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. ( Fixed expenses + Operating income )/ Contribution margin per unit Breakeven sales in units Athena will have to sell extra scarves next year just to pay for rising entrance fee costs
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