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Alida Fashion Ltd produces and sells women wool winter hats and scarfs. The information about both products is as follows: Selling price Variable costs
Alida Fashion Ltd produces and sells women wool winter hats and scarfs. The information about both products is as follows: Selling price Variable costs (b) Winter hats Winter scarf $60 $40 Lukito, the manager of Idol Fashion Ltd found that sales report shows in average the company sells 40 units of winter hats and 60 units of scarfs. The total fixed costs are $57 500. (c) $80 $55 Required (show your working): (a) Calculate the estimated break-even point in units and in sales dollars of winter (3 marks) hats Calculate the estimated break-even point in units and in sales dollars of winter scarfs What is the operating profit when total sales of both products 9 000 units (3 marks) (4 marks)
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