Philadelphia Sunglasses sells two models of glasses at its single retail locationThe Shore and The Poconos. The
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Philadelphia Sunglasses sells two models of glasses at its single retail location—The Shore and The Poconos. The Shore model sells for $180 a pair and The Poconos model sells for $400 a pair. The variable cost of The Shore model is $120 and that of The Poconos model is $250. Annual fixed costs at Philadelphia Sunglasses are $594,750. The break-even point at the current sales mix is 6,500 total pairs.
Required
How many pairs of sunglasses of each model are sold at the break-even level? In other words, what is the assumed sales mix?
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