The following data are for Trendy Fashion Apparel: North South Sales volume (units): Blouses 5,141 4,403 ...

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

Expert Solution

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

ekkarill92 answered 2 years ago

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