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Unlike in Problem 11, the Finch Convenience Store uses different markups for its range of different products, resulting in the following contribution margin ratios per
Unlike in Problem 11, the Finch Convenience Store uses different markups for its range of different products, resulting in the following contribution margin ratios per product category. Beverages have a contribution margin ratio of 75%, non-perishable food 50%, hardware 40%, and magazines 30%. The usual sales mix as a percentage of sales is 40% beverages, 30% non-perishable food, 10% hardware, and 20% magazines. Fixed costs are $8,250 per month. Required Calculate the following: (a) The weighted average contribution ratio (b) The monthly break-even sales revenue for the convenience store (c) The sales revenue for beverages, non-perishable food, hardware, and magazines to achieve break-even sale (d) The sales revenue needed to make an operating profit of $2,750 per months for the convenience store
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