Question: DeAnna Braun sells homemade knit scarves for 16 each at
DeAnna Braun sells homemade knit scarves for $16 each at local craft shows. Her contribution margin ratio is 62.5%. Currently, the craft show entrance fees cost DeAnna $1,000 per year. The craft shows are raising their entrance fees by 15% next year. How many extra scarves will DeAnna have to sell next year just to pay for rising entrance fee costs?
Relevant QuestionsArlan Braun admired his wife’s success at selling scarves at local craft shows (E7-26A), so he decided to make two types of plant stands to sell at the shows. Arlan makes twig stands from twigs he collects from a ...Use the First Nation Travel data in E7-15A to answer the following questions: Requirements 1. What is First Nation Travel’s current margin of safety (in dollars)? 2. What is First Nation Travel’s current operating ...Stancil Drycleaners has determined the following about its costs: Total variable expenses are $38,000, total fixed expenses are $36,000, and the sales revenue needed to break even is $45,000. Use the contribution margin ...Susannah Chardon is thinking about starting an upscale gift basket service. She would create gift baskets for corporate clients and then arrange for delivery. She is trying to decide if the gift basket service would be ...Natasha’s Repair Shop has a monthly target operating income of $13,500. Variable expenses are 70% of sales, and monthly fixed expenses are $10,000. Requirements 1. Compute the monthly margin of safety in dollars if the ...
Post your question