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Author Question: Fine Suiting Company sells shirts for men and boys. The average selling price and variable cost for ... (Read 70 times)

cool

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Fine Suiting Company sells shirts for men and boys. The average selling price and variable cost for each product are as follows:

Men'sBoys'
Selling Price$25.00Selling Price$24.00
Variable Cost$15.40Variable Cost$16.00

 Fixed costs are $35,200.

Required:
a.  What is the breakeven point in units for each type of shirt, assuming the sales mix is 1:1?
b.  What is the operating leverage, assuming the sales mix is 2:1 in favor of men's shirts, and sales total 5,000 shirts?


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Marked as best answer by cool on Mar 6, 2021

jasonq

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cool

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


alexanderhamilton

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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