Question: Please show how this is solved, thank you! The postal service of St. Vincent, an island in the West Indies, obtains a significant portion of

Please show how this is solved, thank you! The postal service of

Please show how this is solved, thank you!

The postal service of St. Vincent, an island in the West Indies, obtains a significant portion of its revenues from sales of special souvenir sheets to stamp collectors. The postal service purchases the souvenir sheets from a supplier for \\( \\$ 1.00 \\) each. St. Vincent has been selling the souvenir sheets for \\( \\$ 12.00 \\) each and ordinarily sells about 84,000 units. To test the market, the postal service recently priced a new souvenir sheet at \\( \\$ 10.20 \\) and sales increased to 100,800 units. Required: 1. What total contribution margin did the postal service earn when it sold 84,000 sheets at a price of \\( \\$ 12.00 \\) each? 2. By what percentage did the St. Vincent post office decrease its selling price? By what percentage did unit sales increase? 3. What total contribution margin did the postal service earn when it sold 100,800 sheets at a price of \\( \\$ 10.20 \\) each? 4. What was the postal service's increase (decrease) in total contribution margin going from the higher price of \\( \\$ 12.00 \\) to the lower price of \\( \\$ 10.20 \\) ? 5. How many sheets would the postal service have to sell at the lower price of \\( \\$ 10.20 \\) to equal the total contribution margin earned at the higher price of \\( \\$ 12.00 \\) ? (Round your answer to the nearest whole number.) 6. What percentage increase in the number of sheets sold at \\( \\$ 10.20 \\) must be achieved to equal the total contribution margin earned at the higher price of \\( \\$ 12.00 \\) ? (Round your intermediate calculations to the nearest whole number. Round final answer to 1 decimal place.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!