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Clovis Supply sells two models of saddles to retail outfittersbasic and custom. Basic saddles sell for $970 each and custom saddles sell for $1,520. The
Clovis Supply sells two models of saddles to retail outfittersbasic and custom. Basic saddles sell for $970 each and custom saddles sell for $1,520. The variable cost of a basic saddle is $580 and that of a custom saddle is $760. Annual fixed costs at Clovis are $267,150. The break-even point at the current sales mix is 500 total units.
Required: |
How many basic saddles and how many custom saddles are sold at the break-even level? |
Basic Saddles = Custom Saddles= |
What is the assumed sales mix? Basic Saddles = % Custom Saddles = % |
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