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Kendall's Men produces and sells three models of action figures representing three basketball players Kendall Jenner has been involved with. In September 2021, the following
Kendall's Men produces and sells three models of action figures representing three basketball players Kendall Jenner has been involved with. In September 2021, the following information is given: Blake Griffin Ben Simmons Devin Booker Sales $250,000 $400,000 $350,000 Variable Costs $125,000 $230,000 $210,000 Kendall's Men also incurred fixed costs of $348,000. a. Determine Kendall's Men's break-even point in sales dollars for each of the Blake Griffin, Ben Simmons, and Devin Booker. Round to the nearest cent. Assume sales mix does not change. (5 points) b. Determine the total margin of safety in sales dollars at Kendall's Men. (2 points) c. Determine the degree of operating leverage at Kendall's Men. (2 points) d. Kendall's Men is considering reducing production of Ben Simmons (drama with the 76ers), and Blake Griffin (just old). In turn, they want to increase production of Devin Booker so that it has by far the highest sales mix, with the two seemingly in a stable relationship and Devin playing great basketball. From a pure profitability sense, is Kendall's Men making the correct choice in the sales mix shift? Why or why not? (4 points) a
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