Outback Outfitters sells high quality hiking boots. They have a capacity to make1500 pairs per year....
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Outback Outfitters sells high quality hiking boots. They have a capacity to make1500 pairs per year. Each pair of hiking boots sells for $630. Annual fixed costs are $280,000,and the variable costs per pair is $350. a) What is the volume of pairs required to break-even? b) What is the total profit in a year where 95% of the capacity of boots are made and sold? c) How many pairs must Outback Outfitters sell to earn an annual profit of $95,000? d) If the variable costs decrease by $27 per pair and the selling price increases by 12%, what is the new break-even volume? e) What is the contribution margin based on the changes in d)? Outback Outfitters sells high quality hiking boots. They have a capacity to make1500 pairs per year. Each pair of hiking boots sells for $630. Annual fixed costs are $280,000,and the variable costs per pair is $350. a) What is the volume of pairs required to break-even? b) What is the total profit in a year where 95% of the capacity of boots are made and sold? c) How many pairs must Outback Outfitters sell to earn an annual profit of $95,000? d) If the variable costs decrease by $27 per pair and the selling price increases by 12%, what is the new break-even volume? e) What is the contribution margin based on the changes in d)?
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Given Capacity to make 1500 pairs per year Selling price per pair 630 Annual fixed costs 280000 Vari... View the full answer
Related Book For
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118856994
4th Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
Posted Date:
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