Question
Briar Company manufactures and sells dresses at a variable cost of $32 each and a fixed cost of x. It can sell 6,600 dresses
Briar Company manufactures and sells dresses at a variable cost of $32 each and a fixed cost of x. It can sell 6,600 dresses at a selling price of $60 to earn an operating income of $14,800 (Option 1) or it can sell 4,600 dresses at a selling price of $74 and another 3,100 dresses at a selling price of $56 (Option 2). Which alternative should Briar choose? Option 1 operating income: Option 2 operating income: Briar should choose
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