Assume a stores Clothing Department has a lower contribution margin ratio but a higher responsibility margin ratio

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Assume a store’s Clothing Department has a lower contribution margin ratio but a higher responsibility margin ratio than its Sporting Goods Department. If $15,000 in advertising is expected to increase the sales of either department by $45,000, in which department would the advertising dollars be spent to the best advantage?

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Financial And Managerial Accounting The Basis For Business Decisions

ISBN: 9781260247930

19th Edition

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

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