Question: A retail company operates two stores, Store A and Store B. The company provides the following information for the month of January: Store A: Sales

A retail company operates two stores, Store A and Store B. The company provides the following information for the month of January:

Store A:

  • Sales revenue: $50,000
  • Variable costs: $20,000
  • Fixed costs: $10,000

Store B:

  • Sales revenue: $80,000
  • Variable costs: $30,000
  • Fixed costs: $15,000

Calculate the following:

a) The contribution margin for each store for the month of January.

b) The weighted average contribution margin for the company for the month of January.

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