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Sports Nation sells two types of soccer jerseys: Deluxe and Superior. The following table shows the ...

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Sports Nation sells two types of soccer jerseys: Deluxe and Superior. The following table shows the ...

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.

Type

Sales Price

Variable Cost

Contribution Margin

Deluxe	$15.00	$10.00	$ 5.00
Superior	25.00	15.00	10.00

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?

Textbook

Managerial Accounting

Edition: 4^th

Author: Davis

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bryrdan

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