Homework Answers
| Product | ||
| Designer | Moderately Priced | |
| Units displayed per square foot: | ||
| Designer | 440/11,000= 0.04 | |
| Moderately priced | 660/11,000 = 0.06 | |
| Contribution margin per unit | $95 | $65 |
| Contribution margin per square foot of display space | $3.8 | $3.9 |
| Capacity-square feet of display space | 11,000 | 11,000 |
| Total contribution margin at capacity | $41,800 | $42,900 |
Hence, company should emphasize moderately price product.
Kindly comment if you need further assistance. Thanks‼!
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Please do all requirements! Requirements and data table
listed
Hoover Rouse Sunglasses sell for about $125 per pair. Suppose
the company incurs the following average costs per pair:
Data Table
Direct materials
$38
Direct labor
12
Variable manufacturing overhead
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Variable marketing expenses
3
Fixed manufacturing overhead
16
*
Total cost
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*
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sunglasses
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special order from Colorado Glasses for 17,000 pairs...
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