Chapter $10$: Qn $12$

Unlike in Problem $11,$ the Finch Convenience Store uses different markups for its range of different

products, resulting in the following contribution margin ratios per product category. Beverages

have a contribution margin ratio of $75\%,$ non$-$perishable food $50\%,$ hardware $40\%,$ and magazines

$30\%.$ The usual sales mix as a percentage of sales is $40\%$ beverages, $30\%$ non$-$perishable food,

$10\%$ hardware, and $20\%$ magazines. Fixed costs are $$8,250$ per month.

Required

Calculate the following:

$($a$)$ The weighted average contribution ratio

$($b$)$ The monthly break$-$even sales revenue for the convenience store

$($c$)$ The sales revenue for beverages, non$-$perishable food, hardware, and magazines to achieve

break$-$even sale

$($d$)$ The sales revenue needed to make an operating profit of $$2,750$ per months for the convenience

store

$($e$)$ The sales revenue needed for beverages, non$-$perishable food, hardware, and magazines to

achieve the operating profit of $$2,750$

Chapter $13,$ On $5$