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Mystique Fashion, Inc. manufactures two products, dresses and skirts, both on the same assembly line. The predicted sales are 10,000 dresses and 12,500 skirts.
Mystique Fashion, Inc. manufactures two products, dresses and skirts, both on the same assembly line. The predicted sales are 10,000 dresses and 12,500 skirts. The predicted costs for the year are as follows: Variable Fixed Materials $200,000 $250,000 $500,000 Other $800,000 Each product uses 50 percent of the materials costs. Based on manufacturing time, 60 percent of the other costs are assigned to the dresses, and 40 percent of the other costs are assigned to skirts. The management of Mystique Fashion desires an annual profit of $100,000. Answer the following questions by filling in the blanks. Do not include any symbols besides decimals in your answers (do not input commas). a. What price should Mystique Fashion charge for each product if management believes the dresses should sell for 50 percent more (in terms of price) than the skirts? 1. Dresses = $ 2. Skirts = $ b. What is the total profit per product? 1. Dresses = $ 2. Skirts = $
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