Question
Windsor sells books, movies, and magazines to a wide customer base. In a typical month, about 40% of its sales volume is from books, 40%
Windsor sells books, movies, and magazines to a wide customer base. In a typical month, about 40% of its sales volume is from books, 40% from movies, and 20% from magazines. The selling price and cost information for each of these product categories is as follows. Books selling price $10 and variable cost/unit 3 Movies selling price $15 and variable cost/unit 9 Magazines selling price $6 and variable cost/unit 1 In addition, Windsor incurs facility and administrative costs that average $28,520 per month. Windsor normally sells 3,100 books each month. Given the current sales mix, how many movies and magazines must it normally sell in a month?
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