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ashly138 ashly138
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6 years ago
Karen's Klothes sells blouses for women and girls. The average selling price and variable cost for each product are as follows:

Women: Selling Price $18.00   Girls: Selling Price $15.00
Women: Variable Cost $12.75   Girls: Variable Cost $10.50
Fixed costs are $30,000 and cannot be separated evenly between the two products.

Required:
a.   What is the break-even point in units for each type of blouse assuming the sales mix is 2:1 in favour of women's blouses? Total sales cannot exceed 7,000 units due to space constraints.
b.   What is the operating income assuming the sales mix is 2:1 in favour of women's blouses, and sales total 9,900 blouses?
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
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pachopacho
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ashly138 Author
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6 years ago
Thanks
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spaghetti
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Smart ... Thanks!
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