Flaherty Ltd sells two types of shoes, mens shoes and womens shoes. During the financial year ended
Question:
Flaherty Ltd sells two types of shoes, men’s shoes and women’s shoes. During the financial year ended 30 June 2019, fixed costs were $460 800 and sales were in the ratio of three units (pairs) of men’s shoes to one unit (pair) of women’s shoes. Men’s shoes sell for $180 per pair, and the variable costs are $116 per pair. Women’s shoes sell for $300 per pair, and the variable costs are $204 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 pairs of men’s shoes and how many pairs of women’s shoes must the firm sell to achieve a profit of $57 600?
Step by Step Answer:
Accounting
ISBN: 9780730363224
10th Edition
Authors: John Hoggett, John Medlin, Keryn Chalmers, Beattie Claire, Hellmann Andreas, Maxfield Jodie