Sherpa Company Manufactures Tents and Sleeping Bags

Essay

Sherpa Company manufactures tents and sleeping bags.Tents are priced at $80,have variable cost of $55,and direct fixed costs of $120,000.Sleeping bags are priced at $60,have variable cost of $35,and direct fixed costs of $66,000.Common fixed costs equal $200,000.Last year,the division sold 5,000 tents and 10,000 sleeping bags.