Chapter : Qn
Unlike in Problem the Finch Convenience Store uses different markups for its range of different
products, resulting in the following contribution margin ratios per product category. Beverages
have a contribution margin ratio of nonperishable food hardware and magazines
The usual sales mix as a percentage of sales is beverages, nonperishable food,
hardware, and magazines. Fixed costs are $ per month.
Required
Calculate the following:
a The weighted average contribution ratio
b The monthly breakeven sales revenue for the convenience store
c The sales revenue for beverages, nonperishable food, hardware, and magazines to achieve
breakeven sale
d The sales revenue needed to make an operating profit of $ per months for the convenience
store
e The sales revenue needed for beverages, nonperishable food, hardware, and magazines to
achieve the operating profit of $
Chapter On
