Question
Suppose Mallcentral sells 1,000,000 hardcover books a day at an average price of $30. Assume that Mallcentrals purchase price for the books is 75% of
Suppose Mallcentral sells 1,000,000 hardcover books a day at an average price of $30. Assume that Mallcentrals purchase price for the books is 75% of the selling price it charges retail customers. Mallcentral has no beginning inventory, but it wants to have a three-day supply of ending inventory. Assume that operating expenses are $1,000,000 per day.
8. What is Mallcentrals budgeted contribution margin for a (seven-day) week?
9. What is Mallcentrals budgeted gross profit for a (seven-day) week?
The Correct Answer for both is $52,500,000. I Don't understand how they get that answer. HELP????
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