Top Posters
Since Sunday
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
lollie614 lollie614
wrote...
Go to Answer
Posts: 116
Rep: 0 0
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?
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
Read 56 times
1 Reply
Replies
Answer verified by a subject expert
sagitario81sagitario81
wrote...
#1
Posts: 113
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

lollie614 Author
wrote...

A year ago
Thanks
zbmallo3
wrote...

Yesterday
Smart ... Thanks!
Loruiz15
wrote...

2 hours ago
This calls for a celebration Person Raising Both Hands in Celebration
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1242 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 1385
  
 300
  
 266
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 352
Previous poll results: Where do you get your textbooks?