Explore BrainMass
Share

# Contribution Margin & Effects of Surprising Sales Boost

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Sitting Pretty, Inc. makes garden chairs that sell for \$800 each. The variable cost of producing the chairs is \$300 per unit and the fixed costs are \$50,000 each month.

a. What is the contribution margin associated with the chairs produced and sold by Sitting Pretty?
b. In June, the company had sales that were \$5,000 higher than anticipated. What is the expected effect on profits as a result of these sales?

#### Solution Preview

a.

Contribution margin = [Selling price - Variable cost] = \$800 - \$300 = ...

#### Solution Summary

The brief calculations to find the contribution margin and effect on profits of higher-than-expected sales for Sitting Pretty are shown.

\$2.19

You are eating a fruit salad that contains the following ingredients: bib lettuce, bananas, apples, coconut, kiwi, mango, avocado, figs, and almonds. Make a list or each item in your salad and their countries of origin.

Include why each fruit grows well in that particular area.