The Sole Shoe Store currently stocks 3 lines of ladies%26#039; shoes. Here is the data for each line:
Flats:
Selling Price - $12
Variable Cost - $6
Sales Distribution - $20,000
Golf:
Selling Price - $20
Variable Cost - $12
Sales Distribution - $10,000
Dress:
Selling Price - $24
Variable Cost - $6
Sales Distribution - $70,000
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#1) What is the TOTAL CONTRIBUTION(%) per overall sales dollar?
#2) What is the Break Even Point in dollars?
A: $42,105
B: $46,281
C: $50,450
D: $84,084
E: None of the above
***Please explain your reasoning, not just give answers. Thanks!***
Break Even Point and Total Contribution algebra problem for this accounting/business management scenario.?
Total contribution per overall sales dollar is equal to the Sales prices less the variable costs
1)
Flats: (12-6)/12
Golf: (20-12)/20
Dress: (24-6)/24
The sales mix is 20/10/70.
So: [20%*(5/12) + 10%(8/20) + 70%(18/24)] = 64.833%
2) Break even is when the contribution equals the fixed costs. We don%26#039;t know what the fixed costs are, so I can%26#039;t answer this question.
cat skin problem
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