Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sandras Shoes sells a quality brand of Sandals, Sneakers, & Boots in a sales mix of 1:3:1. The companys fixed costs are $114,000. Fill out
Sandras Shoes sells a quality brand of Sandals, Sneakers, & Boots in a sales mix of 1:3:1. The companys fixed costs are $114,000. Fill out all blanks in the chart below for part a.
Product data include the following:
Product | Unit | Unit | Contribution Margin | Sales Mix % | WACM |
Sales Price | Variable Costs | ||||
Sandals | 20 | 10 |
|
|
|
Sneakers | 35 | 15 |
|
|
|
Boots | 45 | 20 |
|
|
|
|
Required:
- Compute the weighted-average contribution margin (use chart above)
- Determine the weighted-average breakeven point (in total)
- Calculate the breakeven point for each product
- Verify your results
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started