Is the contribution margin ratio of a grocery store likely to be higher or lower than that of a plastics manufacturer? Explain the difference in cost structure between a grocery store and a plastics manufacturer. How does the cost structure difference impact operating risk?
Answer to relevant QuestionsAlston Jewellery had sales revenues last year of $2.4 million, while its break-even point (in dollars) was $2.2 million. What was Alston Jewellery’s margin of safety in dollars? What does the term margin of safety mean? ...Kay has an etail poster business. Suppose Kay expects to sell 1,000 posters. Her average sales price per poster is $30 and her average cost per poster is $24. Her fixed expenses total $3,600. Compute her margin of safety a. ...Use the information from the Northern Cruiseline Data Set. If Northern Cruiseline sells an additional 500 tickets, by what amount will its operating income increase (or operating loss decrease)? Arlan 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 ...Dean Braknis is evaluating a business opportunity to sell grooming kits at dog shows. Dean can buy the grooming kits at a wholesale cost of $30 per set. He plans to sell the grooming kits for $80 per set. He estimates fixed ...
Post your question