In: Accounting
The following data are for Trendy Fashion Apparel:
North | South | |
Sales volume (units): | ||
Blouses | 5,141 | 4,403 |
Skirts | 3,480 | 8,091 |
Sales price per unit: | ||
Blouses | $21 | $18 |
Skirts | $19 | $16 |
Variable cost per unit | ||
Blouses | $7 | $7 |
Skirts | $12 | $12 |
Determine the contribution margin for the following:
a. Skirts | $fill in the blank 1 |
b. The South Region | $fill in the blank 2 |
Answer | ||
a. |
||
North | South | |
Sales price per unit | $ 19 | $ 16 |
Variable cost per unit | $ 12 | $ 12 |
Contribution margin per unit | $ 7 | $ 4 |
Sales volume | 3,480 | 8,091 |
Contribution margin | $24,360 | $ 32,364 |
Contribution margin for Skirts = $24360+32364 = $56,724 | ||
b. | ||
Blouses | Skirts | |
Sales price per unit | $ 18 | $ 16 |
Variable cost per unit | $ 7 | $ 12 |
Contribution margin per unit | $ 11 | $ 4 |
Sales volume | 4,403 | 8,091 |
Contribution margin | $48,433 | $ 32,364 |
Contribution margin for the South Region = $48433+32364 = $80,797 | ||