Elizabeth Miller sells homemade knit scarves for $14 each at local craft shows. Her contribution margin ratio

Question:

Elizabeth Miller sells homemade knit scarves for $14 each at local craft shows. Her ratio is 62.5%. Currently, the craft show entrance fees cost Elizabeth $1,400 per year. The craft shows are raising their entrance fees by 25% next year. How many extra scarves will Elizabeth have to sell next year just to pay for rising entrance fee costs?
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...