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Blueberry & Co. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows: Plain Fancy Unit selling price
Blueberry & Co. makes and sells two types of shoes, Plain and Fancy. Data concerning these products are as follows: Plain Fancy Unit selling price $60 $125 Variable cost per unit $35 $85 Seventy five percent of the unit sales are Plain, and annual fixed expenses are $35,000. Compute the weighted-average unit contribution margin, assuming a constant sales mix. (5 points) What is the shop's break-even sales volume in dollars? Assume a constant sales mix. (10 points) How many shoes of each type must be sold to earn a target net income of $50,000? Assume a constant sales mix. (5 points)
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