Cathy's Towels sells three items (which it purchases from a supplier): bath towels, hand towels, and...

  

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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, and the income tax rate is 40%. What is the weighted-average contribution margin per unit? How many bath towels must the firm sell at the breakeven point? Bath Hand Wash Total Mix 4 3 9 $6.00 24.00 $3.00 9.00 $1.50 3.00 СМ 36 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, and the income tax rate is 40%. What is the weighted-average contribution margin per unit? How many bath towels must the firm sell at the breakeven point? Bath Hand Wash Total Mix 4 3 9 $6.00 24.00 $3.00 9.00 $1.50 3.00 СМ 36

Answer rating: 100% (QA)

Weighted Avezage contsibution margin pesunit f2493 4 Omersl bath ... View the full answer