ulie Parker sells homemade init scarves for $16 each at local craft shows. Her c

Question

ulie Parker sells homemade init scarves for $16 each at local craft shows. Her con bution ma gin ra 18 62.5%. Cur erty the cra t shower entrance lees by 15% next year. How many otra scarves will Jule have to sel next year jal to pay for rising entrance fee cost? ar e f s st Jie$1,000 per ye The ats ows e ra ng ther Begin by idenifying the general formula to compute the breakeven sales in units Fixed expenses Operating income Contrbusion margin per unitBreakeven salos in units ulie will hve to sel 240 xra scarves nexd year just to pay for rising entrance fe sts 240 e Julie will have to sell

Explanation / Answer

selling price = $16 contribution margin = 62.5% thus contrbution per unit = 16*62.5% 10 current fixed cost           = $1000 increase in fixed cost = 1000*15% 150 extra scarves to be sold = fixed cost/contribution margin per unit 150/10 15 more scarves

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