Question: 8 . What is the weighted average contribution margin rate for the remaining six clothing lines, if the lowest performing clothing line is removed? Calculate

8. What is the weighted average contribution margin rate for the remaining six clothing lines, if the lowest performing clothing line is removed? Calculate the additional break-even sales dollars required to cover only the new fixed costs incurred using the average contribution margin rate. Hint: consider the lost contribution margin from the lowest performing clothing line as one of the new fixed costs. (the reading says there is a 600k sales revenue for the year but with the classic shirt gone it should becoem 570k it also mentions there is 1 fixed cost only of a rental unit that is $31200 for the year
 8. What is the weighted average contribution margin rate for the

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!