Yamhill Marketing purchases novelty gift items from a wholesaler at a cost of $2 each and sells them at retail for $5 each.Yamhill's monthly expenses are as follows: $$\begin{array} { l r }
\text { Rent } & \$ 375 + 5 \% \text { of sales } \
\text { Sales commissions } & 10 \% \text { of sales } \
\text { Utilities } & \$ 115 \text { per month } \
\text { Depreciation on equipment } & \$ 200 \text { per month }
\end{array}$$ If 400 units are sold during January what is Yamhill's total contribution margin for the month?

Question

Yamhill Marketing purchases novelty gift items from a wholesaler at a cost of $2 each and sells them at retail for $5 each.Yamhill's monthly expenses are as follows: $$\begin{array} { l r } 
\text { Rent } & \$ 375 + 5 \% \text { of sales } \
\text { Sales commissions } & 10 \% \text { of sales } \
\text { Utilities } & \$ 115 \text { per month } \
\text { Depreciation on equipment } & \$ 200 \text { per month }
\end{array}$$ If 400 units are sold during January what is Yamhill's total contribution margin for the month?

Quizplus · Accepted Answer

The Answer of Yamhill Marketing purchases novelty gift items from a wholesaler at a cost of $2 each and sells them at retail for $5 each.Yamhill's monthly expenses are as follows: $$\begin{array} { l r } 
\text { Rent } & \$ 375 + 5 \% \text { of sales } \
\text { Sales commissions } & 10 \% \text { of sales } \
\text { Utilities } & \$ 115 \text { per month } \
\text { Depreciation on equipment } & \$ 200 \text { per month }
\end{array}$$ If 400 units are sold during January what is Yamhill's total contribution margin for the month?

Yamhill Marketing Purchases Novelty Gift Items from a Wholesaler at a Cost