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Author Question: Back Yard Leisure sells two types of hammocks: Sundance and Shady Lady. The following table shows ... (Read 19 times)

903f23fj0

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Back Yard Leisure sells two types of hammocks: Sundance and Shady Lady. The following table shows the sales price and variable cost for each hammock. Back Yard Leisure incurs $600,000 a year in fixed costs. Assume the store has a sales mix of four Sundance for each Shady Lady hammock sold.

TypeSales PriceVariable CostContribution Margin
Sundance$125$50$  75
Shady Lady  175  75  100

Required:

a.How many hammocks of each type must be sold for Back Yard Leisure to break
even?
b.What amount of revenue would be generated by each type of hammock for the
company to earn $75,200 in operating income?


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Marked as best answer by 903f23fj0 on Feb 5, 2023

Tussalpain

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903f23fj0

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Reply 2 on: Feb 5, 2023
:D TYSM


kilada

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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