AirStep Shoe Company has two retail stores, one in Gainesville and the other in Orlando. The Gainesville store had sales of $165,000, a contribution margin of 30 percent, and a segment margin of $15,300. The company's two stores have total sales of $380,000, contribution margin of 27 percent, and a total segment margin of $33,600. The contribution margin for the Orlando store must have been:

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Business

Ismael Romero

4 August, 20:03

AirStep Shoe Company has two retail stores, one in Gainesville and the other in Orlando. The Gainesville store had sales of $165,000, a contribution margin of 30 percent, and a segment margin of $15,300. The company's two stores have total sales of $380,000, contribution margin of 27 percent, and a total segment margin of $33,600. The contribution margin for the Orlando store must have been:

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Matias Mendez · Answer 1

365000 - 165000 = $215,000

This gives you the Orlando sales.

215000 x 1.27 (27%) gives you the contribution margin for Orlando store

Answer is : $273,050