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lollie614 lollie614
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A year ago
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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Managerial Accounting

Managerial Accounting


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sagitario81sagitario81
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A year ago
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