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Armidale Manufacturing sells trousers for boys and men. The variable cost and selling price per unit for each product for 2016 are given below: Men's
Armidale Manufacturing sells trousers for boys and men. The variable cost and selling price per unit for each product for 2016 are given below: Men's Boys' Selling Price $26.80 Selling Price $22.00 Variable Cost $18.40 Variable Cost $14.80 Fixed costs for the year are $36, 400. Required: a. Work out the breakeven point for Armidale Manufacturing in units for each type of trousers, assuming that the company's sales mix ratio is 2: 1 in favor of men's trousers? (round off to the nearest unit). b. Work out the company's operating income, assuming the same sales mix ratio as in 'a', and the company sold a total of 7, 500 trousers
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