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Survival Ltd manufactures two types of shoes, Explorer and Evolved. A contribution income statement for a recent month for the two products are as follows:
Survival Ltd manufactures two types of shoes, Explorer and Evolved. A contribution income statement for a recent month for the two products are as follows:
Explorer Evolved Total
Sales 40,000 60,000 100,000
Variable expenses 25,000 40,000 65,000
Contribution margin. 15,000 20,000 35,000
Fixed expenses 22,000
Net operating income 13,000
Survival Ltd sold 1,000 units of Explorer and 800 units of Evolved. Ignore income taxes.
Required:
Calculate how many units of Explorer and Evolved must be sold to break-even.
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