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 Movies Magazines Selling price $10 $15 $6
Variable cost/unit 3 9 1
Weighted-average contribution margin $6.2/unit
In addition, Windsor incurs facility and administrative costs that average $28,520 per month.
Determine how many units from each product category Windsor must sell to break even. (Round answers to 0 decimals, e.g. 15.) Books units Movies units Magazines units
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? Books units Movies units Magazines units (d1) According to the contribution margin of each product category, which product contributes the least toward covering Windsors overall fixed costs?
(d2) Do you think this company puts a great deal of effort toward selling products in this category, or should it? yes or no
or cant tell
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