Sparkle This! is an online jewelry store. The owner, DiamondJoe, maintains a 41% target margin at all
Question:
Sparkle This! is an online jewelry store. The owner, DiamondJoe, maintains a 41% target margin at all times. They areconsidering adding ruby heart pendants to their product line forValentine's Day. The cost from their supplier is $38. Joeestimates they can sell 56 pendants for Valentine's Dayat the price based on their usual target margin.
What would be the appropriate price to achieve their usualtarget margin?
What would be the Total Contribution Margin for the pendants atthe Price and Volume on Valentine's Day that Joe has estimated?
If Joe decided instead to run a special sale on the pendants ata $5 discount what would be the new margin per unit in dollars($)?
How many pendants must they sell with a $5 discount to equal theTotal Contribution Margin at the price with their normal targetmargin?
Fundamentals Of Human Resource Management Functions Applications And Skill Development
ISBN: 9781544324487
2nd Edition
Authors: Robert N. Lussier, John R. Hendon