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What if Style Inc. instead decided to increase the selling price of the product line with the lowest total contribution margin? a. Assuming total revenue

What if Style Inc. instead decided to increase the selling price of the product line with the lowest total contribution margin?
a. Assuming total revenue (and the revenue sales mix) is unaffected by the price increase, what price would they have to charge in order to meet the target contribution margin of $25,000?
b. Do you think this price is feasible? Why/why not?

Fixed costs $78/sqft in rental expense for a 400 sqft storage

Revenue = 600k



Dress shirt product lines

ClassicPremiumExecutive
Retail SP$   75.00$   95.00$ 125.00
% of Total Sales5%15%15%
Tailoring Costs$     7.50$     9.25$   10.75
Shipping Costs$   48.50$   58.75$   69.25






Suit product lines

CoatClassicPremiumExecutive
Retail SP$ 395.00$ 475.00$ 625.00$ 850.00
% of Total Sales10%15%15%25%
Tailoring Costs$   28.35$   25.50$   29.00$   33.10
Shipping Costs$ 181.75$ 163.50$ 186.00$ 211.90

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