You are on page 1of 3

Plain Phone Fancy Phone

Selling Price 3200 4800


Variable costs 2560 3360
Contribution margin 640 1440
Contribution margin ratio 20 30
Plain Phone Fancy Phone

Units / hour 3 1
Contribution margin/unit 640.00 1,440.00
Contribution margin/hour 1,920.00 1,440.00
Total contribution for 10,000 hours 19,200,000.00 14,400,000.00
Regular dept Discount dept

Retail price 160 140


Other variable costs 120 120
Contribution to profit/ unit 40 20
25 14.29

Units sold per year 10,000 22,000


Total contribution to profit
assuming the same space allotment in 400000 440000
both stores.

You might also like