Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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:
- How many bottles of Shiny Coat and Flea-B-Gone must The Doggy Palace sell in a year to break even?
- 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?
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