Clovis Supply sells two models of saddles to retail outfittersbasic and custom. Basic saddles sell for $1,000
Question:
Clovis Supply sells two models of saddles to retail outfitters—basic and custom. Basic saddles sell for $1,000 each and custom saddles sell for $1,500. The variable cost of a basic saddle is $600 and that of a custom saddle is $750. Annual fixed costs at Clovis are $280,500. The break-even point at the current sales mix is 500 total units.
Required
How many basic saddles and how many custom saddles are sold at the break-even level? In other words, what is the assumed salesmix?
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At the breakeven point of 500 total units the total contribution margin will equal the fix...View the full answer
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Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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