Under Armour, a company that wants to empower athletes everywhere, started out to produce a superior T-shirt

Question:

Under Armour, a company that wants to "empower athletes everywhere," started out to produce a superior T-shirt that would help regulate an athlete's body temperature during workouts. The company has expanded its product line well beyond T-shirts, now providing athletes with a wide range of workout wear, footwear, and accessories.
The following chart shows the company's sales mix for 2010 and 2015.
_______________________ 2010 _____________ 2015
Apparel ......................... 83% .................. 73%
Footwear ...................... 12% .................. 18%
Accessories ................... 4% .................. 9%
Required
a. Discuss the effect that the change in sales mix might have had on Under Armour's breakeven point and operating income.
b. Assume that apparel has a higher ratio than accessories. Was the decrease in the percentage of sales provided by apparel a desirable outcome in 2015?
c. Within the apparel line, do you think all products have the same ? Why or why not?
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...