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Unit 3.3 Multiproduct CVP Analysis Shirt Stop sells t-shirts for adults and kids. They expect to sell 50 adult shirts for every 10 kid shirts
Unit 3.3 Multiproduct CVP Analysis Shirt Stop sells t-shirts for adults and kids. They expect to sell 50 adult shirts for every 10 kid shirts they sell, and they have fixed costs of $20,000. The contribution margin is $10 for adult shirts and $5 for kid shirts. The company currently earns $35,000 in operating income. If Shirt Stop's sales mix remains the same, how many additional adult and kid shirts does it need to sell to increase its operating income to $40,000? O 455 adult shirts and 91 kid shirts O 5,000 adult shirts and 1,000 kid shirts O 5,455 adult shirts and 1,091 kid shirts O 4,545 adult shirts and 909 kids shirts
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