Essay
Bob's Textile Company sells shirts for men and boys.The average selling price and variable cost for each product are as follows:
Men's Boys
Selling price $28.80 $24.00
Variable cost $20.42 $16.80
Total fixed costs $38,400
Required:
Assume the sales mix is 2 men's shirts for each boy's shirt:
a. What is the weighted revenue per unit of composite average product,the weighted average variable cost,and the weighted contribution margin per unit of average product?
b. What is the break-even point in units for each type of shirt?
c. What is the operating income,assuming sales total 9,000 shirts?
Correct Answer:
Verified
a. $28.80 (2/3)+ $24.00(1/3)= $27.22 rev...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q6: A processing cycle efficiency (PCE)of 18% indicates
Q7: Quiett Truck manufactures part WB23 used in
Q8: A restaurant is deciding whether it wants
Q9: Nanny McPhee,the owner and manager of Nanny's
Q10: Umberger Manufacturing, Inc., is considering reorganizing its
Q12: An example of a sunk cost is
Q13: Break-even point is NOT an important concept
Q14: Fixed costs:<br>A)may be either direct or indirect
Q15: Alistar's Best reported the following for 2011:<br>
Q16: Contribution margin equals revenues minus:<br>A)product costs.<br>B)period costs.<br>C)variable