Fashion pro currently manufacture

Assignment Help Marketing Management

Reference no: EM13906490

Fashion Pro currently manufacture their novelty t-shirts for a contribution margin of 71%. With a sales revenue of $748,992, their fixed costs require 42% of their sales. They have signed with a new company that can produce their shirts, increasing their contribution margin to 76%. How will this change their net profit margin, assuming the sales revenue does not change?

A) Grows by 5% from 29% to 34%
B) Shrinks by 5% from 34% to 29%
C) Grows by 5% from 24% to 29%
D) Shrinks by 5% from 39% to 34%
E) The correct answer is not listed

Reference no: EM13906490

Questions Cloud

How many observations are below the median : A sample of single persons receiving social security payments revealed these monthly benefits: $826, $699, $1,087, $880, $839, and $965. How many observations are below the median

Compare string values : Write a program that reads two strings from the keyboard and compares them and prints whether they are equal or not.

The identification of key issues : Grading of answers will be based on the identification of key issues, quality of analysis, and consistency of the problem resolution to the issues and analysis. It evaluates knowledge and comprehension; application and analysis; synthesis and evaluat..

Find minimum initial tension require at commissioning stage : Select a suitable belt and, ignoring the elongation at fitting but using the guide mass/unit length, calculate the power transmitted if the maximum permissible tension is 1kN and the coefficient of friction is 0.25 if the motor rotates at 1450rpm

Fashion pro currently manufacture : Fashion Pro currently manufacture their novelty t-shirts for a contribution margin of 71%. With a sales revenue of $748,992, their fixed costs require 42% of their sales. They have signed with a new company that can produce their shirts, increasing t..

The systematic collection and analysis of publicly : The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment

How is kyles gain computed if she sells the stock : Mr. Kyle owns stock in a local publicly traded company. If Kyle is right and the stock price increases in the future, how is his sister's gain computed if she sells the stock?

The tricomponent attribute model : 1)Explain your attitude toward your college/university based on the tricomponent attribute model. Be sure to isolate the cognitive, affective, and conative elements

Prepare a merchandise purchases budget : H20 Sports Company is a merchandiser of three different products.

User Account

All Pages