Question
Blues Traveler Company expects to sell 30,000 Mens Razors and 10,000 Womens Razors for the current year, giving the company a 3:1 sales mix. Total
Blues Traveler Company expects to sell 30,000 Mens Razors and 10,000 Womens Razors for the current year, giving the company a 3:1 sales mix. Total variable and total fixed costs for the company were estimated in question 6. The selling price per unit is $45.00 for the Mens Razor and $55.00 for the Womens Razor. Assume that the variable costs per unit are $20.00 and $25.00 for the Mens and Womens Razors, respectively.
Product | Selling Price | VC Per Unit | CM Per Unit | Sales Mix |
Mens | $45 | $20 | $25 | 3 |
Womens | $55 | $25 | $30 | 1 |
8. Use the information above (including the 3:1 sales mix) to calculate the break-even point in units for both the Mens and Womens products. (INCLUDE ANSWER ON SHEET 8)
9. Determine how many units of each product (Mens and Womens) must be sold to earn a profit of $750,000. (INCLUDE ANSWER ON SHEET 9)
10. Determine how many units must be sold to have a profit of $800,000 assuming that the sales mix changes to 3:2. Remember, for each of your answers for questions 8-10, you must indicate how many Mens Razors and Womens Razors must be sold. (INCLUDE ANSWER ON SHEET 10)
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