Question: What is the weighted average contribution margin rate for the remaining six clothing lines, if the lowest performing clothing line is removed? Calculate the additional
What is the weighted average contribution margin rate for the remaining six clothing lines, if the lowest performing clothing line is removed?
Calculate the additional breakeven sales dollars required to cover only the new fixed costs incurred using the average contribution margin rate. Hint: consider the lost contribution margin from the lowest performing clothing line as one of the new fixed costs.
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