MKTG 304 Homework Assignment: Module #13 Answer the following questions with the associated solutions. 1. If sales is $13,000 and variable costs is $7,000, what is the contribution margin? (2 points) 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 Fixed Costs (F) per Unit (V) Units to Break Even Watches $49.99 $23.25 $2.000 Necklaces $79.95 $29.50 $2,000 Rings $40.00 $2,000 40 Bracelets $19.95 $4.50 $2,000 Earrings $41.50 $12.00 $2,000 a. What are the total fixed costs assigned to the jewelry department for the six-month period? (2 points) b. What is the break-even point for necklaces, bracelets, watches, and earrings? (4 points) 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? (2 points) d. How much does a ring cost at Sallie's? (2 points) TI