Essay About Convenience Profits And Hy’S Market Profit

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Ch 3
34.
a) 3000 units = 210000/70
b) 5000 units = (210000 + 140000)/70
36. Lowes Convenience Hy Market
Amount Percentage Amount Percentage
Sales $500000 100 $500000 100
Variable
Cost $ 325000 65 $ 75000 15
Contribution
Margin $175000 35 $425000 85
Fixed cost $ 30000 6 $280000 56
Operating
Income $195000 29 $145000 29
B) Lowes convenience profits will only increase about 1% with a 15% increase in sales and Hy’s Market profit will increase by 7%
38. Status Quo Alternative Difference
sales revenue $60000 $60900 $900
variable costs $35000 $35700 $700
contribution margin