Fearless, Inc. sells shirts for men and boys. The average selling price and variable cost for each product are as follows: Mens,Selling Price $28.80 ;
Fearless, Inc. sells shirts for men and boys. The average selling price and variable cost for each product are as follows:
Mens,Selling Price $28.80 ; Variable Cost $20.40
Boys, Selling Price $24.00; Variable Cost $20.40 $16.80
The fixed costs for the year total $38,400.
Requirements:
a. What is the margin of safety (in units) per type of shirt, assuming the sales mix is 2:1 in favor of men's shirts, and sales total 9,000 shirts?
b. What is the breakeven level of unit sales for each type of shirt?
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Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine, Christopher D. Burnley
8th Canadian Edition
111959457X, 978-1119594574
