Question
Novak sells books, movies, and magazines to a wide customer base. In a typical month, about 40% of its sales volume is from books, 40%
Novak sells books, movies, and magazines to a wide customer base. In a typical month, about 40% of its sales volume is from books, 40% from movies, and 20% from magazines. The selling price and cost information for each of these product categories is as follows. Books Movies Magazines Selling price $11 $15 $5 Variable cost/unit 3 9 1 In addition, Novak incurs facility and administrative costs that average $30,720 per month. Find the weighted-average contribution margin per unit for this company. (Round answer to 2 decimal places, e.g. 15.25.) Weighted-average contribution margin $enter the weighted-average contribution margin per unit in dollars rounded to 2 decimal places per unit Determine how many units from each product category Novak must sell to break even. (Round answers to 0 decimals, e.g. 15.) Books enter a number of units rounded to 0 decimal places units Movies enter a number of units rounded to 0 decimal places units Magazines enter a number of units rounded to 0 decimal places units
Novak normally sells 2,900 books each month. Given the current sales mix, how many movies and magazines must it normally sell in a month? Books enter a number of units units Movies enter a number of units units Magazines enter a number of units units (d1) According to the contribution margin of each product category, which product contributes the least toward covering Novaks overall fixed costs?
select a product (d2) Do you think this company puts a great deal of effort toward selling products in this category, or should it? select an option
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