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Author Question: Sports Nation sells two types of soccer jerseys: Deluxe and Superior. The following table shows the ... (Read 16 times)

Darron12

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Sports Nation sells two types of soccer jerseys: Deluxe and Superior. The following table shows the sales price and unit variable costs for each jersey. Sports Nation incurs $200,000 a year in fixed costs. Assume the store has a sales mix of three Deluxe jerseys for every Superior jersey sold.

TypeSales PriceVariable CostContribution Margin
Deluxe$15.00$10.00$  5.00
Superior  25.00  15.0010.00

Required:

a.How many jerseys of each type will be sold at the break-even point?
b.What amount of revenue would need to be generated by each type of jersey for
the company to earn $25,000 in operating income?


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Marked as best answer by Darron12 on Feb 5, 2023

ahardin89

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Darron12

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Reply 2 on: Feb 5, 2023
Excellent


phuda

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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