Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blossom Leisure sells two types of hammocks: Sundance and Shady Lady. The following table shows the sales price and variable cost for each hammock. Blossom

image text in transcribedimage text in transcribed

Blossom Leisure sells two types of hammocks: Sundance and Shady Lady. The following table shows the sales price and variable cost for each hammock. Blossom Leisure incurs $480,000 a year in fixed costs. Assume the store has a sales mix of four Sundance for each Shady Lady hammock sold. Type Sundance Shady Lady Sales Price $100 140 Variable Cost $40 60 Contribution Margin $60 80 (a) Your answer has been saved. See score details after the due date. How many hammocks of each type must be sold for Blossom Leisure to break even? (Round answers to O decimal places, e.g. 25,000.) Sundance 6000 How many hammocks of each type must be sold for Blossom Leisure to break even? (Round answers to 0 decimal places, e.g. 25,000.) Sundance 6000 Shady Lady 1500 Attempts: 1 of 1 used (b) What amount of revenue would be generated by each type of hammock for the company to earn $60,160 in operating income? (Round answers to 0 decimal places, e.g. 25,000.) Sundance $ Shady Lady $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How To Avoid IRS Audits

Authors: Victor S. Sy, CPA, MBA, Allana Santos, Roger Oriel, Louie Gajardo, Malou Aguilar Bledsoe, RJ Oriel, Mark Xavier Bautista, Kenno Samulde, Morton D Rosenthal Esq.

1st Edition

1530746477, 978-1530746477

More Books

Students also viewed these Accounting questions

Question

My opinions/suggestions are valued.

Answered: 1 week ago