Fine Suiting Company Sells Shirts for Men and Boys $\text { Fixed costs are } \$ 35,200 \text {. }$

Essay

Fine Suiting Company sells shirts for men and boys.The average selling price and variable cost for each product are as follows:
$\begin{array}{llll}&\text { Men's }&&\text { Boys }\\\text { Selling Price } & \$ 25.00 & \text { Selling Price } & \$ 24.00 \\\text { Variable Cost } & \$ 15.40 & \text { Variable Cost } & \$ 16.00\end{array}$
$\text { Fixed costs are } \$ 35,200 \text {. }$ Required:
a.What is the breakeven point in units for each type of shirt,assuming the sales mix is 1:1?
b.What is the operating leverage,assuming the sales mix is 2:1 in favor of men's shirts,and sales total 5,000 shirts?