1) Cy-Ski Unlimited Inc. wants to launch a new line of ski jackets for their winter collection. The jackets are expected to sell at a price of $ 200 each. You can procure these jackets from a contract manufacturer overseas. You have estimated the total landed cost of mens and womens jackets will be $175 and $160 per unit respectively. You estimate fixed costs to be $ 260,000 (contract setup, ongoing monitoring, specialized equipment for your product, etc.).

a) If you expect to sell a sales mix is 1:1 (one mens jacket sold for every womens jacket) what is the breakeven point in units of jackets? dollar sales?

b) If the sales mix is 1:2 (one mens jacket sold for every 2 womens jacket) what is the break even point in units of mens and womens jackets and in dollar sales?

c) If the sales mix is 2:1 (two mens jacket sold for every womens jacket) what is the break even point in units of mens and womens jackets and in dollar sales?

d) Which sales mix (from a, b, c) should you choose?

e) With the sales mix selected (in d) how many units of mens and womens jackets will Cy-Ski Inc. need to produce/sell to have a profit of $100,000?