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Case Study 3: Costing and Break-even Analysis A local Jamaican shoes company produces two popular brands of dress shoes. The following information is available: Total
Case Study 3: Costing and Break-even Analysis A local Jamaican shoes company produces two popular brands of dress shoes. The following information is available: Total fixed costs are $234,000. The company plans to sell 21,000 pairs of Men's dress shoes and 7,000 pairs of Women's dress shoes. Required: a) Compute the contribution margin for each beverage. (4 Marks) b) What is the expected net income? (4 Marks) c) Assume the sales mix is 3 pairs of Men's dress shoes for every 1 pair of Women's dress shoes; What is the break-even point in pairs for each pair of shoes? (5 Marks) d) Assume the sales mix is 3 pairs of Men's dress shoes for every 2 pairs of Women's dress shoes; What is the break-even point in pairs for each pair of shoes
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