Leather and Boots Inc. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows: Plain Fancy Unit selling price $20.00 $35.00 Variable cost per unit 12.00 24.50 Sixty percent of the unit sales are Plain, and annual fixed expenses are $45,000. REQUIREMENTS 1) Assuming that the sales mix remains constant, the total number of units that Leather and Boots must sell to break even is? 2) Assuming that the sales mix remains constant, the total number of units that Fancy must sell to break even is?
Leather and Boots Inc. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows: Plain Fancy Unit selling price $20.00 $35.00 Variable cost per unit 12.00 24.50 Sixty percent of the unit sales are Plain, and annual fixed expenses are $45,000. REQUIREMENTS 1) Assuming that the sales mix remains constant, the total number of units that Leather and Boots must sell to break even is? 2) Assuming that the sales mix remains constant, the total number of units that Fancy must sell to break even is?
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 7PB: Abilene Industries manufactures and sells three products (XX, W, and ZZ). The sales price and unit...
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Leather and Boots Inc. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows:
Plain | Fancy | |
Unit selling price | $20.00 | $35.00 |
Variable cost per unit | 12.00 | 24.50 |
Sixty percent of the unit sales are Plain, and annual fixed expenses are $45,000.
REQUIREMENTS
1) Assuming that the sales mix remains constant, the total number of units that Leather and Boots must sell to break even is?
2) Assuming that the sales mix remains constant, the total number of units that Fancy must sell to break even is?
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