Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Retirement Income Recipes In R From Ruin Probabilities To Intelligent Drawdowns

Authors: Moshe Arye Milevsky

1st Edition

3030514331, 9783030514334

More Books

Students also viewed these Accounting questions