Dress shirt product lines
	Classic	Premium	Executive
Retail SP	$ 75.00	$ 95.00	$ 125.00
% of Total Sales	14%	7%	14%
Tailoring Costs	$ 12.00	$ 16.00	$ 18.00
Shipping Costs	$ 35.00	$ 40.00	$ 45.00
	Suit product lines
	Coat	Classic	Premium	Executive
Retail SP	$ 395.00	$ 475.00	$ 625.00	$ 850.00
% of Total Sales	20%	12%	13%	20%
Tailoring Costs	$ 55.00	$ 115.00	$ 125.00	$ 135.00
Shipping Costs	$ 200.00	$ 210.00	$ 215.00	$ 220.00

1) Based on total revenues of $600,000, what are the expected sales and total contribution margins for each product?

2) Assume Style Inc. decided to drop the product line with the lowest total contribution margin. Further, assume they decided to try and offset the lost profits from the dropped line by spending an additional $5,000 in advertising. a.How much additional sales revenue would Style Inc. need to generate in order to recover the profits from the dropped line, and the increased advertising costs. [Hint You need to utilize the WACMR, however, dropping a product line changes the sales mix, total revenues, total contribution margin, and WACMR.]

b. How much of a percentage increase in sales would this equate to? Do you think this increase is realistic? Why/why not?