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CostVolume-Profit S. Assume that a Lands' End down jacket selling for $100 uses 12 ounces of down Further assume that Lands' End has $250,000 of
CostVolume-Profit S. Assume that a Lands' End down jacket selling for $100 uses 12 ounces of down Further assume that Lands' End has $250,000 of fixed costs related to the down jacket line and its other variable manufacturing costs (direct materials, drect labor, and manufacturing overhead) total $60 per jacket. As stated in the story, the cost per ound of down was $13 and $23 in October 2010 and October 2012, respectively. Calculate the breakeven number of jackets both in (a) October 2010: and (b) October 2012. Do these breakeven numbers agree with your answers to the prior questions? 6. Assum now the same set of facts as in Question 5 but that Lands End raises the sell. ing price of each jacket by $10 in October 2013. Does the contribution margin per- centage remain the same what is the new em natio 2013 pid imuose
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