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The Doggy Palace is an upscale grooming salon for dogs. Doggy Palace sells two types of doggy shampoo. Shiny Coat sells for $20 per bottle

The Doggy Palace is an upscale grooming salon for dogs. Doggy Palace sells two types of doggy shampoo. Shiny Coat sells for $20 per bottle and Flea-B-Gone sells for $10 per bottle. Fixed costs total $20,000. Additional cost data is as follows:

Shiny Coat

Flea-B-Gone

Price per bottle

$20

$10

Unit variable cost

$10

$ 5

Sales volume

1,600

3,200

Required:

  1. How many bottles of Shiny Coat and Flea-B-Gone must The Doggy Palace sell in a year to break even?
  2. At the current product mix, how many bottles of Shiny Coat and Flea-B-Gone must The Doggy Palace sell in a year in order to earn a profit of $25,000 before taxes?

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