Week 2

Part 1

Nordstrom buys Ted Baker London belts for men. One line of belts costs the retailer $27.35 per belt while they are sold for $65.00. Ted Bakers fixed costs for this line of belts are $7,015. Nordstrom advertises this line of belts on Instagram twice a year. Those advertising costs total $2,500 per year. The retailers yearly profit objective for this line of belts is $27,500. (a) What is the CPU? $35.21 $39.15 $37.65 #33.54

Part 2

1. Nordstrom buys Ted Baker London belts for men. One line of belts costs the retailer $27.35 per belt while they are sold for $65.00. Ted Bakers fixed costs for this line of belts are $7,015. Nordstrom advertises this line of belts on Instagram twice a year. Those advertising costs total $2,500 per year. The retailers yearly profit objective for this line of belts is $27,500.

   (b) What is the CM (show to two decimal places)?

   		53.54%
   		61.05%
   		59.80%
   		57.92%

Part 3

Nordstrom buys Ted Baker London belts for men. One line of belts costs the retailer $27.35 per belt while they are sold for $65.00. Ted Bakers fixed costs for this line of belts are $7,015. Nordstrom advertises this line of belts on Instagram twice a year. Those advertising costs total $2,500 per year. The retailers yearly profit objective for this line of belts is $27,500.

(c) If the Nordstrom sells 11,000 of this particular belt this year, what is the total contribution from the belts?

		$429,689
		$392,818
		$427,022
		$414,150