Question: 4. (2 point) Cathy's Towels sells three items (which it purchases from a supplier): bath towels, hand towels, and washcloths in a 4:3.2 mix (thus,
4. (2 point) Cathy's Towels sells three items (which it purchases from a supplier): bath towels, hand towels, and washcloths in a 4:3.2 mix (thus, a batch of 9 towels has 4 bath towels, 3 hand towels, and 2 washcloths). Each bath towel sells for $10 and costs $4, each hand towel sells for $5 and costs $2; and each washcloth sells for $2.50 and costs $1. The shop's annual fixed expenses are $324,000. a. (1 point) What is the weighted-average contribution margin per unit? b. (1 point) How many bath towels must the firm sell at the breakeven point? 5. (2 point) JCH Sports plans to market a new product for the upcoming college season. Costs associated with the new product, at two different volume ranges, are as follows:
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
