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Philadelphia Sunglasses sells two models of glasses at its single retail locationThe Shore and The Poconos. The Shore model sells for $192 a pair and
Philadelphia Sunglasses sells two models of glasses at its single retail locationThe Shore and The Poconos. The Shore model sells for $192 a pair and The Poconos model sells for $430 a pair. The variable cost of The Shore model is $132 and that of The Poconos model is $280. Annual fixed costs at Philadelphia Sunglasses are $611,310. The break-even point at the current sales mix is 7,100 total pairs.
Required:
a. How many pairs of sunglasses of each model are sold at the break-even level?
Break-even level | ||
The Shore Model | pairs | |
The Poconos Model | pairs |
b. What is the assumed sales mix?
Sales Mix | ||
The Shore Model | % | |
The Poconos Model | % |
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