Mary Walker sells homemade knit scarves for $25 each at local craft shows. Her contribution margin ratio is 60%. Currently, the craft show entrance fees cost Mary $1,500 per year. The craft shows are raising their entrance fees by 25% next year. How many extra scarves will Mary have to sell next year just to pay for rising entrance fee costs?
Mary Walker sells homemade knit scarves for $25 each at local craft shows. Her contribution margin ratio is 60%. Currently, the craft show entrance fees cost Mary $1,500 per year. The craft shows are raising their entrance fees by 25% next year. How many extra scarves will Mary have to sell next year just to pay for rising entrance fee costs?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mary Walker sells homemade knit scarves for $25 each at local craft shows. Her contribution margin ratio is 60%. Currently, the craft show entrance fees cost Mary $1,500 per year. The craft shows are raising their entrance fees by 25% next year. How many extra scarves will Mary have to sell next year just to pay for rising entrance fee costs?
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