Soles Ltd sells two types of shoes, sandals and sneakers. During the financial year ended 30 June

Question:

Soles Ltd sells two types of shoes, sandals and sneakers. During the financial year ended 30 June 2025, fixed costs were \($230\) 400 and sales were in the ratio of three units (pairs) of sandals to one unit (pair) of sneakers. Sandals sell for \($90\) per pair, and the variable costs are \($58\) per pair. Sneakers sell for \($150\) per pair, and the variable costs are \($102\) per pair.

Required

(a) Calculate the break-even point in total units, and the number of units of each type of shoe that must be sold at the break-even point.

(b) How many units of sandals and how many pairs of sneakers must the firm sell to achieve a profit of \($28\) 800?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting

ISBN: 9780730382737

11th Edition

Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie

Question Posted: