1. If sales is $13,000 and variable costs is $7,000, what is the contribution margin?  

2. Answer the questions by looking at the worksheet below.

Break-Even Analysis Worksheet

Store: Sallie’s Accessories

Location: 129 Fashion Way, Skokie, Illinois

Product Line: Jewelry

Period: Six months beginning June 2008

Item	Unit Price (P)	Variable Costs per Unit (V)	Fixed Costs (F)	Units to Break Even
Watches	$49.99	$23.25	$2,000	75
Necklaces	$79.95	$29.50	$2,000	40
Rings	$10	$40.00	$2,000	40
Bracelets	$19.95	$4.50	$2,000	130
Earrings	$41.50	$12.00	$2,000	68

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2. a. What are the total fixed costs assigned to the jewelry department for the six-month period? 
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4. b. What is the break-even point for necklaces, bracelets, watches, and earrings?  
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6. c. What would happen to the break-even point if Sallie raised the price of the bracelets by 0.50 cents and reduced it by 0.50 cents? 

d. How much does a ring cost at Sallie’s?

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Answer rating: 100% (QA)

Solution Ans 1 Calculation of contribution margin contribution marg... View the full answer